Carothers Company assembled the following information in completing its March bank reconciliation: balance per bank $7,640; outstanding checks $1,550; deposits in transit $2,500; NSF check $160; bank service charge $50; cash balance per books $8,800.As a result of this reconciliation, Carothers will

Question

Quizplus · Accepted Answer

The correct adjustments to Carothers' cash account due to the reconciliation involve subtracting the NSF (non-sufficient funds) check amount of $160 and the bank service charge of $50. The total reduction is $210 ($160 + $50). Outstanding checks and deposits in transit affect the bank's balance, not the company's book balance, and are not direct adjustments to the cash account.

Carothers Company Assembled the Following Information in Completing Its March