Rainey Company's true cash balance at October 31 is $5,710.The following information is available for the bank reconciliation:
Outstanding checks,$600
Deposits in transit,$450
Bank service charges,$90
The bank had collected an account receivable for Rainey Company,$1,000
The bank statement included an NSF check written by one of Ramsey's customers for $600.
What was the unadjusted book balance at October 31?

Question

Quizplus · Accepted Answer

True cash balance of $5,710 = Unadjusted book balance (the unknown)- Service charge of $90 + Collection of the accounts receivable of $1,000 ? NSF check of $600
Unadjusted book balance = $5,710 + $90 - $1,000 + $600 = $5,400

Rainey Company's True Cash Balance at October 31 Is $5,710