Clayborn Company deposits all cash receipts on the day they are received and mak

Question

Clayborn Company deposits all cash receipts on the day they are received and makes all cash payments by check. At the close of business on May 31, its Cash account shows a debit balance of $24,025 Clayborn's May bank statement shows $21,400 on deposit in the bank Determine the adjusted cash balance using the following information: Deposit in transit outstanding checks Bank service fees, not yet recorded by company A NSF check from a customer, not yet recorded by the company $7,300 $6,000 $ 95 $1,230 The adjusted cash balance should be Multiple Choice $22 700 $23,930 $22,725 $15,400 $28,700

Explanation / Answer

Adjusted cash balance

= Cash balance as per cash account - Bank service fees - NSF check

= $24,025 - $95 - $1,230

= $22,700

Adjusted cash balance is $22,700.

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