Ending Company is in bankruptcy and is being liquidated under the provisions of Chapter 7 of the bankruptcy code.The trustee has converted all assets into $80,000 cash (which includes the amounts shown below for assets sold)and has prepared the following list of approved claims:
Note payable to bank,secured by all accounts receivable of which $20,000
Required:
How much will the bank receive on the note payable?

Question

Ending Company is in bankruptcy and is being liquidated under the provisions of Chapter 7 of the bankruptcy code.The trustee has converted all assets into $80,000 cash (which includes the amounts shown below for assets sold)and has prepared the following list of approved claims:
    Note payable to bank,secured by all accounts receivable of which $20,000
  Required:
How much will the bank receive on the note payable?

Quizplus · Accepted Answer

The Answer of Ending Company is in bankruptcy and is being liquidated under the provisions of Chapter 7 of the bankruptcy code.The trustee has converted all assets into $80,000 cash (which includes the amounts shown below for assets sold)and has prepared the following list of approved claims:
    Note payable to bank,secured by all accounts receivable of which $20,000
  Required:
How much will the bank receive on the note payable?

Ending Company Is in Bankruptcy and Is Being Liquidated Under