Russel Company assembled the following information in completing its March bank reconciliation: $$\begin{array} { l r }
\text { Balance per bank } & \$ 11,460 \
\text { Outstanding checks } & \$ 2,325 \
\text { Deposits in transit } & \$ 3,750 \
\text { NSF check } & \$ 240 \
\text { Bank service charge } & \$ 75 \
\text { Cash balance per books } & \$ 13,200
\end{array}$$ As a result of this reconciliation, Russel will
A) reduce its cash account by $1,425.
B) reduce its cash account by $75.
C) increase its cash account by $165.
D) reduce its cash account by $315.

Question

Russel Company assembled the following information in completing its March bank reconciliation: $$\begin{array} { l r } 
\text { Balance per bank } & \$ 11,460 \
\text { Outstanding checks } & \$ 2,325 \
\text { Deposits in transit } & \$ 3,750 \
\text { NSF check } & \$ 240 \
\text { Bank service charge } & \$ 75 \
\text { Cash balance per books } & \$ 13,200
\end{array}$$ As a result of this reconciliation, Russel will
A) reduce its cash account by $1,425.
B) reduce its cash account by $75.
C) increase its cash account by $165.
D) reduce its cash account by $315.

Quizplus · Accepted Answer

The cash account should be reduced by $315, which is the sum of the NSF check ($240) and the bank service charge ($75).

Russel Company Assembled the Following Information in Completing Its March