You are doing a bank reconciliation for May, 20X1. You have a $2,785 unadjusted ledger cash balance and the following data:
Outstanding checks:No 719, $200; No 727, $800; No 732, $625
Deposit in transit, $1,200
Check No 742 written for $505 but incorrectly recorded as $550
NSF check from a customer, $500
Bank service charge for May, $5
Balance per bank statement, $2,750
What dollar amount should be deducted from the balance per bank statement?
What dollar amount should be deducted from the balance per book?
Which adjustment will you need to make to company books?
a. a net decrease in Cash of $550
b. a net decrease in Cash of $505
c. a net decrease in Cash of $460
d. a net increase in Cash of $45