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The Cash account in the ledger of Clear Windows shows a balance of $12,596 at September 30.The bank statement,however,shows a balance of $16,253 at the same date.The only reconciling items consist of a bank service charge of $16,a large number of outstanding checks totaling $6,740,and a deposit in transit.
-What is the adjusted cash balance in the September 30 bank reconciliation?
A)$16,237.
B)$12,580.
C)$9,513.
D)$5,856.

Question

Quizplus · Accepted Answer

The adjusted cash balance is calculated by starting with the ledger balance of $12,596, subtracting the bank service charge of $16, and adding the deposit in transit, which is the difference needed to reconcile the ledger balance with the bank statement balance after accounting for outstanding checks. The calculation is $12,596 - $16 + ($16,253 - $12,596 - $6,740) = $12,580.

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