In the month of May, Grimm Company Inc. wrote checks in the amount of $27,750. In June, checks in the amount of $37,974 were written. In May, $25,404 of these checks were presented to the bank for payment, and $32,649 in June. What is the amount of outstanding checks at the end of June?
A) $5,325
B) $2,346
C) $7,671
D) $10,650

Question

Quizplus · Accepted Answer

To find the outstanding checks at the end of June, we need to subtract the total amount of checks presented for payment by the bank from the total amount of checks written.

Total checks written = May checks + June checks
Total checks written = $27,750 + $37,974
Total checks written = $65,724

Total checks presented for payment = May checks presented + June checks presented
Total checks presented for payment = $25,404 + $32,649
Total checks presented for payment = $58,053

Outstanding checks = Total checks written - Total checks presented for payment
Outstanding checks = $65,724 - $58,053
Outstanding checks = $7,671

Therefore, the answer is option C) $7,671.

In the Month of May, Grimm Company Inc