Advanced Accounting 10th Edition by Thomas Schaefer, Joe Ben Hoyle, Timothy Doupnik

Exercise 27

Prior to filing a voluntary Chapter 7 bankruptcy petition, Haynes Company pays a supplier $13,000 to satisfy an unsecured claim.Haynes was insolvent at the time.Subsequently, the trustee appointed to oversee this liquidation forces the return of this $13,000.Which of the following is correct
a.A preference transfer has been voided.
b.All transactions just prior to a voluntary bankruptcy proceeding must be nullified.
c.The supplier should sue for the return of this money.
d.The $ 13,000 claim becomes a liability with priority.