Finale 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 $180,000 cash and has prepared the following list of approved claims:
Customer deposits ($1,000 from each of three customers
Note payable to bank,secured by all accounts receivable of which $45,000
Required:
How much will the bank receive on the note payable?

Question

Finale 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 $180,000 cash and has prepared the following list of approved claims:
Customer deposits ($1,000 from each of three customers
      Note payable to bank,secured by all accounts receivable of which $45,000
  Required:
How much will the bank receive on the note payable?

Quizplus · Accepted Answer

The Answer of Finale 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 $180,000 cash and has prepared the following list of approved claims:
Customer deposits ($1,000 from each of three customers
      Note payable to bank,secured by all accounts receivable of which $45,000
  Required:
How much will the bank receive on the note payable?

Finale Company Is in Bankruptcy and Is Being Liquidated Under