James Company Had Checks Outstanding Totaling $32,400 on Its June

question 11

Multiple Choice

James Company had checks outstanding totaling $32,400 on its June bank reconciliation.In July, James Company issued checks totaling $233,400.The July bank statement shows that $157,800 in checks cleared the bank in July.A check from one of James Company's customers in the amount of $1,800 was also returned marked "NSF." The amount of outstanding checks on James Company's July bank reconciliation should be

• A)$75,600.
• B)$108,000.
• C)$106,200.
• D)$43,200.

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Definitions:

Increased Profits

A rise in the amount of net earnings gained from business operations after all costs have been subtracted.

Indirect Exporting

A form of exporting where a company sells its products to a third party, such as an export intermediary, who then sells the products in foreign markets.

Intellectual Property

Legal rights that result from intellectual activity in the industrial, scientific, literary, or artistic fields.

Royalty

A payment made to an owner of certain types of rights, such as patents, copyrights, or natural resources, for the right to use those rights.