Alvin Electronics is in the process of reconciling its bank account for the month of November. The following information is available: Balance per bank statement $ 8,325 Outstanding checks 2,400 Deposits outstanding 1,215 Bank service charges for November 35 Check written by Alvin for $300 but recorded incorrectly by Alvin as a $30 disbursement. What should be the corrected cash balance at the end of November

Question

Jenna Faulkner

Business

21 April, 08:59

Alvin Electronics is in the process of reconciling its bank account for the month of November. The following information is available: Balance per bank statement $ 8,325 Outstanding checks 2,400 Deposits outstanding 1,215 Bank service charges for November 35 Check written by Alvin for $300 but recorded incorrectly by Alvin as a $30 disbursement. What should be the corrected cash balance at the end of November

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Answers (1)

Know the Answer?

Aditya Wilcox · Answer 1

The correct answer is $7,140.

Explanation:

According to the scenario, the computation for the given data are as follows:

Balance per bank statement = $8,325

Outstanding checks = $2,400

Deposits outstanding = $1,215

So, we can calculate the corrected cash balance by using following formula:

Corrected cash balance = Balance per bank statement - Outstanding checks + Deposits outstanding

= $8325 - $2,400 + $1,215

= $7,140