Deng Company Gathered the Following Reconciling Information in Preparing Its

question 36

Multiple Choice

Deng Company gathered the following reconciling information in preparing its June bank reconciliation: $$\begin{array} { l r } \text { Cash balance per books, } 6 / 30 & \$ 12,600 \\\text { Deposits in transit } & 2,300 \\\text { Notes receivable and interest collected by bank } & 5,060 \\\text { Bank charge for check printing } & 200 \\\text { Outstanding checks } & 6,000 \\\text { NSF check } & 1,420\end{array}$$ Use the following tabular analysis to determine the required adjustment for the outstanding checks:

• A)Decrease Cash $6000 decrease Accounts Receivable $12000.
• B)Increase Cash $6000 increase Revenue $6000.
• C)Increase Accounts Receivable $6000 increase Revenues $6000.
• D)No adjustment is needed to Deng's accounts for the outstanding checks.

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Definitions:

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Authority based in custom, birthright, or divine right.

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A German sociologist, philosopher, and political economist known for his theories on the structure of society, the nature of authority, and the role of religion in capitalism.