Lesher Corporation lost their primary contract and entered into voluntary Chapter 7 bankruptcy in the early part of 2014.By July 1,all assets were converted into cash,the secured creditors were paid,and $124,500 in cash was left to pay the remaining claims as follows:
Claims incurred between the date of filing an involuntary
Wages payable (all under $10,000 per employee; earned within
Required:
Classify the claims by their Chapter 7 priority ranking,and analyze which amounts will be paid and which amounts will be written off.

Question

Lesher Corporation lost their primary contract and entered into voluntary Chapter 7 bankruptcy in the early part of 2014.By July 1,all assets were converted into cash,the secured creditors were paid,and $124,500 in cash was left to pay the remaining claims as follows:
  Claims incurred between the date of filing an involuntary
  Wages payable (all under $10,000 per employee; earned within
  Required:
Classify the claims by their Chapter 7 priority ranking,and analyze which amounts will be paid and which amounts will be written off.

Quizplus · Accepted Answer

The Answer of Lesher Corporation lost their primary contract and entered into voluntary Chapter 7 bankruptcy in the early part of 2014.By July 1,all assets were converted into cash,the secured creditors were paid,and $124,500 in cash was left to pay the remaining claims as follows:
  Claims incurred between the date of filing an involuntary
  Wages payable (all under $10,000 per employee; earned within
  Required:
Classify the claims by their Chapter 7 priority ranking,and analyze which amounts will be paid and which amounts will be written off.

Lesher Corporation Lost Their Primary Contract and Entered into Voluntary