Reference no: EM133009800

Grass Company provided the following information:

Balance per bank statement July 31 - 1,240,000;

Balance per ledger, July 31 - 750,000;

Deposit of July 30 not recorded by bank - 280,000;

Debit memo - service charges - 10,000;

Credit memo - collection of note by bank for Grass - 300,000;

Outstanding checks - ???

An analysis of the canceled checks returned with the bank statement reveals the following:

• Check for purchase of supplies was drawn for P60,000 but was recorded as P90,000.
• The manager wrote a check for traveling expenses of P100,000 while out of town. The check was not recorded.

Problem 1: What is the amount of outstanding checks on July 31?

a. 550,000
b. 270,000
c. 970,000
d. 610,000