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maksim [4K]
3 years ago
9

Darlene Company had checks outstanding totaling $5,400 on its June bank reconciliation. In July, Darlene Company issued checks t

otaling $38,900. The July bank statement shows that $26,300 in checks cleared the bank in July. A check from one of Darlene Company's customers in the amount of $300 was also returned marked "NSF." The amount of outstanding checks on Darlene Company's July bank reconciliation should be a. $12,600. b. $18,000. c. $17,700. d. $7,200.
Business
1 answer:
Pie3 years ago
4 0

Answer:

b. $18,000

Explanation:

The computation of outstanding checks is shown below:-

Outstanding checks as of the end of July = Start with outstanding checks as of June + Amount of checks issued in July - Amount of checks that cleared in July

= $5,400 + $38,900 - $26,300

= $44,300 - $26,300

= $18,000

Note, The $300 check was issued by a customer, not Darlene.

So, for computing the outstanding checks as of the end of July we simply applied the above formula.

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