On May 5, Alston Issued a $150 Check to Mauch

question 44

Essay

On May 5, Alston issued a $150 check to Mauch. Three days later, on May 8, Alston died. Mauch presented the check to the bank for payment on May 10. The bank knew of Alston's death but paid the $150 to Mauch. Was the bank's action legal?

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Definitions:

Ending Inventory

The worth of products ready for purchase at an accounting period's close, determined by adding the initial inventory to acquisitions and subtracting the cost of goods sold.

Unit Sales

The quantity of items sold by a company, not taking into account any returns or cancellations.

Units

A measure of quantity or amount in business, such as items produced, sold, or in inventory.

Production Budget

An estimate of the total units that need to be produced in a period to meet expected sales demands and inventory levels.