Henderson Company had an unadjusted cash balance of $8,950 as of May 31. The company’s bank statement, also dated May 31, included a $200 NSF check written by one of Henderson’s customers. There were $930 in outstanding checks and $280 in deposits in transit as of May 31. According to the bank statement, service charges were $60, and the bank collected a $600 note receivable for Henderson. The bank statement also showed $10 of interest revenue earned by Henderson.
Required
Determine the true cash balance as of May 31. (Hint: It is not necessary to use all of the preceding items to determine the true balance.