Modos Company has deposited $3,500 in checks received from customers. It has written $1,400 in checks to its suppliers. The initial bank and book balance was $600. If $1,600 of its customers' checks have cleared, but only $600 of its own, calculate its float.
A) $1,200
B) $1,100
C) $300
D) $700

Question

Quizplus · Accepted Answer

Bank balance = $600 + $1.600 − $600 = $1,600
Book balance = $600 + $3,500 − $1,400 = $2,700
Float = $1,100

Modos Company Has Deposited $3,500 in Checks Received from Customers