Luke Gilbert is to retire from the partnership of Gilbert and Associates as of March 31, the end of the current fiscal year. After closing the accounts, the capital balances of the partners are as follows: Luke Gilbert, $245,000; Marissa Cohen, $125,000; and Tyrone Cobb, $140,000. They have shared net income and net losses in the ratio of 3:2:2. The partners agree that the merchandise inventory should be increased by $24,000, and the allowance for doubtful accounts should be increased by $5,800. Gilbert agrees to accept a note for $200,000 in partial settlement of his ownership equity. The remainder of his claim is to be paid in cash. Cohen and Cobb are to share equally in the net income or net loss of the new partnership.

Journalize the entries to record 

(a) The adjustment of the assets to bring them into agreement with current market prices and 

(b) The withdrawal of Gilbert from the partnership.