At March 31, Cummins Company had an unadjusted balance in its cash account of $10,400. At the end of March, the company determined that it had outstanding checks of $900, deposits in transit of $600, a bank service charge of $20, and a NSF check from a customer for $200. What is the true cash balance at March 31?

Question

Quizplus · Accepted Answer

To find the true cash balance, we need to adjust the unadjusted balance by adding deposits in transit and deducting outstanding checks. 
Adjusted balance= $10,400 + $600 - $900 = $10,100 
Then we need to deduct the bank service charge and NSF check from the adjusted balance, 
True cash balance= $10,100 - $20 - $200 = $10,180 
Therefore, the best choice is B.

At March 31, Cummins Company Had an Unadjusted Balance in Its