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Problem
Paul has an account at St. Jerome Bank. He does not track his checking account balance in a checkbook register. Yesterday evening, he placed two checks in the mail for $142.25 and $205.44. Paul accessed this account online and finds his balance to be $458.76, and all the checks he has written except for the two checks from yesterday have cleared. Based on that balance, he wrote a check for a new stereo for $221.15.
What are the consequences of his actions? (Select the best answer below.)
A. One of Paul's checks will bounce if he does not make another deposit because he wrote a check for a $221.15 stereo when the actual balance in his checkbook was $111.07.
B. Paul should be fine because his actual balance is $458.76 and the stereo will only cost $221.15.
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