Winter Gloves Company had checks outstanding totaling $12,800 on its May bank reconciliation. In June, Winter Gloves Company issued checks totaling $79,800. The July bank statement shows that $71,400 in checks cleared the bank in July. A check from one of Winter Gloves Company's customers in the amount of $2,000 was also returned marked "NSF." The amount of outstanding checks on Winter Gloves Company's July bank reconciliation should be
A) $8,400.
B) $19,200.
C) $21,200.
D) $23,200.

Question

Quizplus · Accepted Answer

To find the outstanding checks on Winter Gloves Company's July bank reconciliation, we need to add the checks outstanding from the previous month to the checks issued in June and then subtract the checks that have cleared the bank in July. We also need to subtract any checks that were returned unpaid (NSF).
Checks outstanding from May = $12,800
Checks issued in June = $79,800
Checks that cleared in July = $71,400
Returned check = $2,000
$12,800 + $79,800 - $71,400 - $2,000 = $19,200
Therefore, the amount of outstanding checks on Winter Gloves Company's July bank reconciliation is $21,200.

Winter Gloves Company Had Checks Outstanding Totaling $12,800 on Its