What is the amount of cheques written and paid in july

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Reference no: EM132489812

At the end of the month of July you close the books of your company and received the bank statement. You are ready to start with the Adjusting journal entries and realized that a bank reconciliation must be performed.

First you collect the data from June 30th reconciliation as follows:

Balance per Bank$10,000

add: Deposits in Transit$6,300

deduct: Outstanding Cheques$(5,000)

Balance per Books$9,600

Second you close your update your Cash and bank account with all transactions recorded before AJE and you have:

Balance July 31$11,000

Deposits$8,500

Cheques$6,500

Third you look at the bank statement provided by your bank and you see the following:

Balance July 31$10,280

Deposits$13,000

Cheques$10,000

Note collected$700

Bank service charge$ 50

NSF cheque$1,000

Interest received$180

Autowithdrawals$250

Question 1: What is the amount of cheques written and paid in July?

Option 1: $5,000

Option 2: $3,500

Option 3: $10,000

Option 4: $6,500

Reference no: EM132489812

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