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stira [4]
3 years ago
12

Clayborn Company deposits all cash receipts on the day they are received and makes all cash payments by check. At the close of b

usiness on May 31, its Cash account shows a debit balance of $21,525. Clayborn's May bank statement shows $19,400 on deposit in the bank. Determine the adjusted cash balance using the following information:
Deposit in transit $6,550
Outstanding checks $5,500
Bank service fees, not yet recorded by company $70
A NSF check from a customer, not yet recorded by the company $1,005
The adjusted cash balance should be:
Business
1 answer:
kvasek [131]3 years ago
8 0

Answer:

$20,450

Explanation:

With regard to the above, the adjusted cash balance would be computer as;

= Bank balance + deposits in transit - outstanding checks

= $19,400 + $6,550 - $5,500

= $20,450

or

= Bank balance - service fees - NSF checks

= $21,525 - $70 - $1,005

= $20,450

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