Designs on You
the Following Information Relates to the Company's

Designs on You
The following information relates to the company's May bank reconciliation:
$\begin{array}{llr} \text { Bank statement balance} &\$5,000\\ \text { Unadjusted cash balance according to company records } &?\\ \text { Deposit in transit } &1,000\\ \text { Outstanding cheques} &500\\ \text { Bank service charges } &50\\ \text { Interest earned on the bank account } &10\\ \text { Customer's NSF cheque returned by the bank } &25\\\end{array}$
In addition, a cheque was recorded in the accounting records as $1,200 but the correct amount as recorded by the bank was only $1,000.
-Refer to the figure Designs on You.What is the company's adjusted cash balance at May 31?

A) $4,865
B) $5,000
C) $5,365
D) $5,500