Clark Company Developed the Following Reconciling Information in Preparing Its

question 250

Multiple Choice

Clark Company developed the following reconciling information in preparing its September bank reconciliation: $$\begin{array} { l r } \text { Cash balance per bank, } 9 / 30 & \$ 30,800 \\\text { Note receivable collected by bank } & 16,800 \\\text { Outstanding checks } & 25,200 \\\text { Deposits in transit } & 12,600 \\\text { Bank service charge } & 210 \\\text { NSF check } & 3,360\end{array}$$ Using the above information, determine the cash balance per books (before adjustments) for the Clark Company.

• A) $27,370.
• B) $43,400.
• C) $4,970.
• D) $42,000.

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Definitions:

Cost of Goods Sold

Cost of Goods Sold (COGS) is the direct costs attributable to the production of the goods sold by a company, including the cost of the materials and labor directly used to create the good.

Accounts Receivable

Outstanding amounts due to a firm from customers for goods or services already delivered.

Cost of Goods Sold

Costs directly associated with the manufacturing of products that a business sells.

Collection Period

The standard timeframe for a corporation to collect receivables from its clientele.