In the Process of Reconciling Its Bank Statement for January

question 14

Multiple Choice

In the process of reconciling its bank statement for January, Maxi's Clothing's accountant compiles the following information:
$\begin{array} { | l | l | } \hline \text { Cash balance per company books on January 30 } & \$ 4,725 \\\hline \text { Deposits in transit at month-end } & { \$ 1,800 } \\\hline \text { Outstanding checks at month-end } & \$ 520 \\\hline \text { Bank service charges } & \$ 25 \\\hline \text { EFT automatically deducted monthly, not yet recorded by Maxi } & \$ 380 \\\hline \text { An NSF check returned on a customer account } & \$ 265\\\hline \\\hline \text { An NSF check returned on a customer account } & \$ 265\\\hline\end{array}$

• A) $4,055
• B) $4,585
• C) $5,335
• D) $4,815
• E) $5,855

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Definitions:

Farmers

Individuals or entities engaged in the practice of agriculture, cultivating plants and raising livestock for food, fiber, and other products.

Total Amount

The entire quantity or sum of an item, measurement, or value, not excluding any part.

Purely Competitive Market

A market characterized by many buyers and sellers, homogeneous products, free entry and exit, and perfect information, leading to price determination by market forces.

Agricultural Commodity

Basic goods used in commerce that are interchangeable with other goods of the same type, such as grains, beef, or milk, primarily produced through farming activities.