Clayborn Company deposits all cash receipts on the day they are received and makes all cash payments by check.At the close of business on May 31,its Cash account shows a debit balance of $17,025.Clayborn's May bank statement shows $15,800 on deposit in the bank.Determine the adjusted cash balance using the following information:
$$\begin{array} { | l | r | }
\hline \text { Deposit in transit } & \$ 5,200 \
\hline \text { Outstanding checks } & \$ 4,600 \
\hline \text { Bank service fees, not yet recorded by company } & \$ 25 \
\hline \text { A NSF check from a customer, not yet recorded by the company } & \$ 600 \
\hline
\end{array}$$
The adjusted cash balance should be:

Question

Clayborn Company deposits all cash receipts on the day they are received and makes all cash payments by check.At the close of business on May 31,its Cash account shows a debit balance of $17,025.Clayborn's May bank statement shows $15,800 on deposit in the bank.Determine the adjusted cash balance using the following information:
$$\begin{array} { | l | r | } 
\hline \text { Deposit in transit } & \$ 5,200 \
\hline \text { Outstanding checks } & \$ 4,600 \
\hline \text { Bank service fees, not yet recorded by company } & \$ 25 \
\hline \text { A NSF check from a customer, not yet recorded by the company } & \$ 600 \
\hline
\end{array}$$
The adjusted cash balance should be:

Quizplus · Accepted Answer

The adjusted cash balance is $16,400. This is calculated by adding the deposit in transit ($5,200) to the bank statement balance ($15,800) and subtracting the outstanding checks ($4,600) and the bank service fees ($25).

Clayborn Company Deposits All Cash Receipts on the Day They