A) As of Monday morning, the ledger balance and the available balance for a firm

Question

A)

As of Monday morning, the ledger balance and the available balance for a firm was $3,600. During the day, the firm wrote three checks in the amounts of $230, $590, and $870. The firm deposited a check for $350 and a check for $920. What is the amount of the collection float as of the end of the day?

$1,690

B)

On any given day, Athens Florist receives numerous checks worth an average combined total of $6,300. The funds from the deposited checks are generally available in 1.5 days. Every day the firm mails out checks totaling $4,600 that generally take 2 days to clear the bank. What is the amount of the disbursement float?

$420 $580 $840 $1,270

$1,690

B)

On any given day, Athens Florist receives numerous checks worth an average combined total of $6,300. The funds from the deposited checks are generally available in 1.5 days. Every day the firm mails out checks totaling $4,600 that generally take 2 days to clear the bank. What is the amount of the disbursement float?

$150 $6,900 $9,150 $9,200 $9,850

Explanation / Answer

Hi,

Please find the detailed answer as follows:

Part A:

Collection Float = Total Value of Checks Deposited = 350 + 920 = 1270 (Option D)

Part B:

Disbursement Float = Amount of Disbursement*Number of Days taken to Clear the Checks = 4600*2 = 9200 (Option D)

Thanks.

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