Carothers Company Assembled the Following Information in Completing Its March

question 223

Multiple Choice

Carothers Company assembled the following information in completing its March bank reconciliation: balance per bank $7,640; outstanding checks $1,550; deposits in transit $2,500; NSF check $160; bank service charge $50; cash balance per books $8,800. As a result of this reconciliation, Carothers will

• A) reduce its cash account by $50.
• B) reduce its cash account by $210.
• C) reduce its cash account by $950.
• D) increase its cash account by $110.