Carothers Company assembled the following information in completing its March bank reconciliation: balance per bank $7,640; outstanding checks $1,550; deposits in transit $2,500; NSF check $160; bank service charge $50; cash balance per books $8,800. As a result of this reconciliation, Carothers will
A) reduce its cash account by $50.
B) reduce its cash account by $210.
C) reduce its cash account by $950.
D) increase its cash account by $110.

Question

Quizplus · Accepted Answer

The cash account should be reduced by the NSF check amount ($160) and the bank service charge ($50), totaling $210.

Carothers Company Assembled the Following Information in Completing Its March