X Company used the following items to complete its bank reconciliation for the month of October: ∙ Deposits in transit were $2,500.
∙ Outstanding checks totaled $1,100.
∙ Bank service charges were $10.
∙ The company correctly wrote a check for $192,but mistakenly recorded the check as $129 on its books.The bank cashed the check correctly for $192.
∙ A customer's check for $50 was returned by the bank,NSF.
The $1,100 of outstanding checks should be ________.

Question

Quizplus · Accepted Answer

Outstanding checks are checks that have been written by the company but have not yet been cleared by the bank. Therefore, they should be deducted from the balance per bank statement to reconcile the company's book balance with the bank statement balance.

X Company Used the Following Items to Complete Its Bank