I1) Clayborn Company deposits all cash receipts on the day they are received pay

Question

I1) Clayborn Company deposits all cash receipts on the day they are received payments by check. 517,025. Clayborn's May bank stalement shows $ 15,800 on deposit in the bank. Determine 1 cash balance using the following information At the close of business on May 31, its Cash account shows a debit balance of and makes all cash Deposit in transit Outstanding checks $4,600 $5,200 Bank service fees, not yet recorded by company $25 A NSF check from a customer, not yet recorded by the company S600 The adjusted cash balance should be: 11) A) SI6,425 B) S17.000 C) $16,400 D) $21,000 E) SI1,200

Explanation / Answer

Adjusted cash book = balance on may 3- deposit in transit+ outstanding cheques-service charges

=17025-4600+5200-25

As check from customer not yet recorded in any books so no need to adjust

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