When johnson hardware shop borrowed 20000 from first bank, Operation Management

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When johnson hardware shop borrowed 20000 from first bank

When Johnson Hardware Shop borrowed $20,000 from First Bank, it used its inventory as collateral for the loan. First Bank perfected its security interest by filing a financing statement. The inventory was subsequently damaged by fire, Flanders Insurance paid Johnson Hardware $5,000 for loss, but First Bank claimed the proceeds of the insurance. Was First Bank correct? Why or Why not

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Operation Management: When johnson hardware shop borrowed 20000 from first bank

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