Reference no: EM132568115

Perlas Co. maintains a checking account at the Union Bank. The bank provides a bank statement along with the canceled checks on the last day of each month. The July bank statement included the following information:

Balance, July 1 275,000 Deposits 900,000

Checks processed 700,000 Service charge 15,000

NSF Check 60,000 Monthly automatic loan payment deduction by bank 50,000

• Deposits outstanding totaled P50,000 and all checks written by the depositor were processed by the bank except for check of P75,000.
• A P100,000 July deposit from a credit customer was recorded as P10,000 debit Cash and credit Accounts receivable.
• A check correctly recorded by the entity as P15,000 disbursements was incorrectly processed by the bank as P150,000 disbursement.

Question 1: What is the balance per bank on July 31?

Option 1: 475,000

Option 2: Answer not given

Option 3: 275,000

Option 4: 400,000

Option 5: 350,000