On Andrew Corp.'s April bank reconciliation, cheques outstanding totalled $9,620.In May, the corporation issued cheques totalling $26,800.The May bank statement shows that $24,250 in cheques cleared the bank in May.A cheque from one of Andrew Corp.'s customers in the amount of $325 was also returned marked "NSF." The amount of outstanding cheques on Andrew's May bank reconciliation should be
A)$2,550.
B)$11,845.
C)$12,495.
D)$12,170.

Question

Quizplus · Accepted Answer

To find the outstanding cheques for May, start with the outstanding cheques from April ($9,620), add the cheques issued in May ($26,800), and subtract the cheques that cleared in May ($24,250). The NSF cheque does not affect the outstanding cheques calculation. Thus, $9,620 + $26,800 - $24,250 = $12,170.