In the month of May, Grimm Company .wrote checks in the amount of $92,500. In June, checks in the amount of $126,580 were written. In May, $84,680 of these checks were presented to the bank for payment, and $108,830 in June. What is the amount of outstanding checks at the end of June?
A) $17,750
B) $7,820
C) $25,570
D) $35,500

Question

Quizplus · Accepted Answer

To find the outstanding checks, we need to subtract the checks that have already been presented for payment from the total amount of checks written.

In May: 
Total checks written = $92,500 
Checks presented for payment = $84,680 
Outstanding checks at the end of May = $92,500 - $84,680 = $7,820

In June: 
Total checks written = $126,580 
Checks presented for payment = $108,830 
Outstanding checks at the end of June = $126,580 - $108,830 = $17,750

Therefore, the total amount of outstanding checks at the end of June is: 
Outstanding checks as of May + Outstanding checks as of June 
= $7,820 + $17,750 = $25,570

Thus, the best choice is C, $25,570.

In the Month of May, Grimm Company