Nolan Company had checks outstanding totaling $7,200 on its June bank reconciliation.In July, Nolan Company issued checks totaling $51,900.The July bank statement shows that $32,400 in checks cleared the bank in July.A check from one of Nolan Company's customers in the amount of $400 was also returned marked "NSF." The amount of outstanding checks on Nolan Company's July bank reconciliation should be

Question

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The outstanding checks at the end of July are calculated as follows: Start with the outstanding checks from June ($7,200), add the checks issued in July ($51,900), and subtract the checks that cleared in July ($32,400). This results in $7,200 + $51,900 - $32,400 = $26,700. The NSF check does not affect the outstanding checks calculation.

Nolan Company Had Checks Outstanding Totaling $7,200 on Its June