In January, Jazz Dance Studio owes Kay, its musical director, $1,800 for cur¬rent wages, receives $700 as a down payment for dance lessons from Lora, and pays a Music, Inc., a sheet music supplier, $1,500 of $3,000 owed. In February, the studio files for bankruptcy under Chapter 7.
-Refer to Fact Pattern 26-2.The highest priority with respect to payment of claims belongs to

Question

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Kay, as an employee owed wages, has a higher priority in bankruptcy claims than general creditors.

In January, Jazz Dance Studio Owes Kay, Its Musical Director