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The Cash account in the ledger of Clear Windows shows a balance of $12,596 at September 30.The bank statement,however,shows a balance of $16,253 at the same date.The only reconciling items consist of a bank service charge of $16,a large number of outstanding checks totaling $6,740,and a deposit in transit.
-What is the amount of the deposits in transit?
A)$5,856.
B)$9,513.
C)$3,067.
D)$3,083.

Question

Quizplus · Accepted Answer

The deposits in transit can be calculated by adjusting the bank statement balance for the outstanding checks and the bank service charge to match the ledger balance. The calculation is: $16,253 (bank balance) - $6,740 (outstanding checks) + deposits in transit - $16 (service charge) = $12,596 (ledger balance). Solving for deposits in transit gives $3,067.

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