Schwinn Company assembled the following information in completing its March bank reconciliation: $$\begin{array} { l r }
\text { Balance per bank } & \$ 15,280 \
\text { Outstanding checks } & \$ 3,100 \
\text { Deposits in transit } & \$ 5,000 \
\text { NSF check } & \$ 320 \
\text { Bank service charge } & \$ 100 \
\text { Cash balance per books } & \$ 17,600
\end{array}$$ As a result of this reconciliation, Schwinn will
A) reduce its cash account by $1,900.
B) reduce its cash account by $100.
C) increase its cash account by $220.
D) reduce its cash account by $420.

Question

Schwinn Company assembled the following information in completing its March bank reconciliation: $$\begin{array} { l r } 
\text { Balance per bank } & \$ 15,280 \
\text { Outstanding checks } & \$ 3,100 \
\text { Deposits in transit } & \$ 5,000 \
\text { NSF check } & \$ 320 \
\text { Bank service charge } & \$ 100 \
\text { Cash balance per books } & \$ 17,600
\end{array}$$ As a result of this reconciliation, Schwinn will
A) reduce its cash account by $1,900.
B) reduce its cash account by $100.
C) increase its cash account by $220.
D) reduce its cash account by $420.

Quizplus · Accepted Answer

The cash account should be reduced by the NSF check amount ($320) and the bank service charge ($100), totaling $420.

Schwinn Company Assembled the Following Information in Completing Its March