The cash account shows a balance of $50,000 before reconciliation. The bank stat

Question

The cash account shows a balance of $50,000 before reconciliation. The bank statement does not include a deposit of $2,100 made on the last day of the month. The bank statement shows a collection by the bank of $1,750 and a customer's check for $550 was returned because it was NSF. A customer's check for $1,050 was recorded on the books as $1,005, and a check written for $168 was recorded as $186. The correct balance in the cash account was

Select one:

A. $47,727

B. $47,763

C. $51,263

D. $53,363

Explanation / Answer

Answer is C. $51,263

Cash balance before reconciliation $ 50,000 Add: Collection by bank $    1,750 Less: NSF Check $     (550) Add: Error in recording of customer check ($1,050 - $1,005) $          45 Add: Error in recording of check ($186-$168) $          18 Adjusted cash balance $ 51,263

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