Question - You are doing a bank reconciliation for May, 2010. You have a $2,785 unadjusted ledger cash balance and the following data:
- Outstanding checks: $200, $800, $625
- Deposits in transit: $1,200
- Check 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?
A) $1,425
B) $1,625
C) $505
D) $2,125