Hoppmann Company wrote checks totaling $25,620 during October and $27,975 during November. $24,360 of these checks cleared the bank in October, and $27,330 cleared the bank in November. What was the amount of outstanding checks on November 30?
A) $645
B) $1,260
C) $1,905
D) $2,355

Question

Quizplus · Accepted Answer

The amount of checks written in October that did not clear the bank by November is $25,620 - $24,360 = $1,260. 
The amount of checks written in November is $27,975, and the amount that cleared the bank in November is $27,330. 
Therefore, the amount of outstanding checks on November 30 is:

Outstanding checks = (checks written in November - checks cleared in November) + checks from October 
Outstanding checks = ($27,975 - $27,330) + $1,260 
Outstanding checks = $645 + $1,260 
Outstanding checks = $1,905

So, the correct choice is C.

Hoppmann Company Wrote Checks Totaling $25,620 During October and $27,975