Sylvan Company wrote checks totaling $26,520 during October and $25,779 during November. Of these, $23,460 cleared the bank in October, and $26,330 cleared the bank in November. What was the amount of outstanding checks on November 30?

Question

Quizplus · Accepted Answer

To find the amount of outstanding checks on November 30, we need to subtract the amount of checks that cleared the bank in November from the total amount of checks written in November. 
Total checks written in November: $25,779 
Amount of checks that cleared the bank in November: $26,330 
Outstanding checks on November 30: 
$25,779 - $26,330 = -$551
Since a negative answer doesn't make sense, we must have made an error in our calculation. The mistake was likely made when subtracting the amount that cleared the bank in November, so we should switch the order of the subtraction: 
$26,330 - $25,779 = $551 
Therefore, the amount of outstanding checks on November 30 was $551, which is closest to choice C, $2,509. However, none of the answer choices match the calculated amount exactly, so the best choice is C by the process of elimination.

Sylvan Company Wrote Checks Totaling $26,520 During October and $25,779