Reference no: EM132976682

Clayborn Company deposits all cash receipts on the day they are received and makes all cash payments by check. At the close of business on May 31, its Cash account shows a debit balance of $26,025. Clayborn's May bank statement shows $23,000 on deposit in the bank.

Determine the adjusted cash balance using the following information:

Deposit in transit $7,900
Outstanding checks $6,400
Bank service fees, not yet recorded by company $115
A NSF check from a customer, not yet recorded by the company $1,410

Problem 1: The adjusted cash balance should be:

Multiple Choice

a) $24,525
b) $24,500
c) $16,600
d) $30,900
e) $25,910