Question

Winter Gloves Company had checks outstanding totaling $6,400 on its May bank reconciliation. In June, Winter Gloves Company issued checks totaling $39,900. The July bank statement shows that $35,000 in checks cleared the bank in July. A check from one of Winter Gloves Company's customers in the amount of $1,000 was also returned marked "NSF." The amount of outstanding checks on Winter Gloves Company's July bank reconciliation should be a. $4,200. b. $9,600. c. $10,600. d. $11,600.

Answer 1

Answer:

$11,300

Explanation:

The computation of the amount of outstanding checks is shown below:

Outstanding checks in the month of May = $6,400

Now

Checks outstanding in the month of July is

= $39,900 - $35,000

= $4,900

So, the total amount of outstanding checks is

= $6,400 + $4,900

= $11,300

This is the amount but the same is not mentioned in the given options

We simply added the May outstanding checks and July outstanding checks