Question: Peaslee is not known for his business sense He started

Peaslee is not known for his business sense. He started a greenhouse and nursery business two years ago, and because of his lack of experience, he soon was in debt to a number of creditors. On February 1, Peaslee borrowed $ 5,000 from his father to pay some of these creditors. On May 1, Peaslee paid back the $ 5,000, depleting his working capital. One creditor, the Cool Springs Nursery Supply Corp., had extended credit to Peaslee on numerous purchases. Cool Springs pressured Peaslee for payment, and on July 1, Peaslee paid Cool Springs half the amount owed. On September 1, Peaslee voluntarily petitioned himself into bankruptcy. The trustee in bankruptcy claims that both Peaslee’s father and Cool Springs must turn over to the debtor’s estate the amounts Peaslee paid to them. Discuss fully the trustee’s claims.

Sale on SolutionInn
  • CreatedJune 18, 2014
  • Files Included
Post your question