On november 7 2010 edward nicholson issued a check in the

Assignment Help Accounting Basics

Reference no: EM13581615

On November 7, 2010, Edward Nicholson issued a check in the amount of $21,000 payable to the order of Michael Kittinger based upon Kittinger's fraudulent representations concerning a real-estate transaction. That same day Kittinger delivered the check without endorsing it to Chase Bank, which paid him $ 5,000 in cash and deposited the balance to his account. Chase Bank stamped the back of the check "Pay any bank, banker, or trust company, prior endorsements guaranteed" and sent it to the drawee, Metropolitan Bank, for payment. Metropolitan paid Chase Bank and deducted $21,000 from Nicholson's account. Four months later, Nicholson discovered he had been defrauded; he immediately notified the Chase and Metropolitan banks of the situation. Kittinger has since departed for parts unknown.
Does Nicholson have any chance of recovering his money from either bank? Why or why not? What facts might we change in order to improve his chances of recovery?

Reference no: EM13581615

Questions Cloud

Which one of the following assumptions or principles most : 1. under current gaap most resources of a business entity are to be valued in its financial statements ata. a value

Wendells donut shoppe is investigating the purchase of a : wendells donut shoppe is investigating the purchase of a new 18600 donut-making machine. the new machine would permit

Determine whether the company should make the cases or buy : a company is planning to introduce a new portable tv to its existing product line. management must decide whether to

It is late 1999 and you are a successful oil executive : it is late 1999 and you are a successful oil executive currently working in alaska for a major oil company. tomorrow

On november 7 2010 edward nicholson issued a check in the : on november 7 2010 edward nicholson issued a check in the amount of 21000 payable to the order of michael kittinger

On december 1 showcase interiors purchased a shopment of : on december 1 showcase interiors purchased a shopment of furniture from colonial house by paying 10500 cash and issuing

Costs incurred to date 280000 600000 785000 estimated costs : costs incurred to date 280000 600000 785000 estimated costs yet to be incurred 520000 200000 0 customer billings to

A company is planning to introduce a new portable tv to its : a company is planning to introduce a new portable tv to its existing product line. management must decide whether to

Prepare a statement of cash flows using the direct method : the comparative balance sheet of charles inc. for december 31 2014 and 2013 is shown as followsdec. 31 2014dec. 31

User Account

All Pages