In the month of November (its first period of operations) Gavin Company Inc.wrote checks in the amount of $46250.In December checks in the amount of $63290 were written.During November $42340 of these checks were presented to the bank for payment and $54415 during December.What is the amount of outstanding checks at the end of December?

Question

Quizplus · Accepted Answer

Outstanding checks refer to the checks issued by the company but not yet presented to the bank for payment. To calculate the outstanding checks, we need to subtract the checks presented from the total checks written. 
Total checks written in November = $46,250
Checks presented during November = $42,340
Therefore, outstanding checks at the end of November = $3,910 ($46,250 - $42,340).
Total checks written in December = $63,290 
Checks presented during December = $54,415
Therefore, outstanding checks at the end of December = $12,785 ($63,290 - $54,415).
Hence, the correct option is C.

In the Month of November (Its First Period of Operations)