plum company has been in receivership for the past five months at the beginning of t 4372832

Plum Company has been in receivership for the past five months. At the beginning of this period, the following trial balance was taken from Plum Company’s books.Cash……………… $ 4,500 Accounts Receivable……….. 15,000 Inventory …………… 142,650 Property and Equipment ……. 90,600…………………. $252,750 Allowance for Uncollectibles…….. $ 3,750 Accumulated Depreciation……….. 36,825 Accounts Payable……….. 143,175 Capital Stock ………….. 135,000 Retained Earnings (deficit) ……. (66,000)…………………. $252,750 The trustee, P. Smith, who was appointed to manage the debtor’s business during the period of liquidation, opened a new set of books and took title to Plum Company’s assets on June 1, 2012. The activities of the trustee during the five-month period ended October 31, 2012, are as follows:1. The trustee sold all Plum Company’s inventory for $153,000, of which $75,000 represented credit sales.2. Cash was collected on old receivables, $11,250, and on new receivables, $64,500.3. Expenses paid during the period were Operating expenses…. $11,850 Trustee expenses…. 3,0004. The trustee recorded depreciation expense of $5,250.5. The trustee paid off all the accounts payable.6. Estimated uncollectibles on the new accounts receivable were $2,250; the trustee wrote off all the remaining old accounts receivable.7. The trustee sold all the property and equipment for $43,500.Required:A. Prepare journal entries to record the effects of these transactions on the books of both the trustee and Plum Company.B. Prepare a combining workpaper at the end of the five-month period, October 31, 2012.View Solution:
Plum Company has been in receivership for the past five

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