[The Following Information Applies to the Questions Displayed Below

question 192

Multiple Choice

[The following information applies to the questions displayed below.]
The Cash account in the ledger of Hensley,Inc.showed a balance of $3,100 at June 30.The bank statement,however,showed a balance of $3,900 at the same date.The only reconciling items consisted of a $700 deposit in transit,a bank service charge of $7,and a large number of outstanding checks.
-What is the total amount of the outstanding checks at June 30?

• A)$1,500.
• B)$1,513.
• C)$1,486.
• D)$1,507.

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Definitions:

Favored Customers

Those who receive special treatment from dealers during situations of excess demand.

Special Treatment

The act of giving preferential or unique consideration or handling to a particular person or group.

Supply Fixed

A situation where the availability of a good or service is limited and cannot be easily adjusted.

Unique Product

A product that is different from anything else on the market, either because of its brand, design, or functionality, giving it a competitive advantage.