Question

Gray Company provided the following information for October and November. Checks and charges recorded by bank in November including a November service charge of P5,000 and NSF check of P20,000 550,000 Service charge made by bank in October and recorded by depositor in November 10,000 Total credits to cash n all journals during November 620,000/ DM Customer NSF check returned in October and redeposited in November but no entry made by depositor in either October or November affects rin recent 40,000 clue Outstnding checks on October 31 that cleraed in November 230,000/ What amount was reported as outstanding checks on November 30? a. 275,000 b. 300,000 315,000 d. 290,000 Can you provide a solution?

Also, can you explain the "customer NSF check returned in Oct. and redeposited in Nov. but no entry made by depositor in either Oct. or Nov.?

Answer 1

The amount reported as outstanding checks on November 30 is P250,000.

Step-by-step explanation:

To determine the amount of outstanding checks on November 30, we need to analyze the given information provided for October and November. In October, there were outstanding checks of P230,000 that cleared in November. Additionally, in November, there was an NSF check of P20,000. Therefore, the total amount of outstanding checks on November 30 is P230,000 + P20,000 = P250,000.

The statement 'customer NSF check returned in October and redeposited in November but no entry made by depositor in either October or November' means that the customer's check bounced in October due to insufficient funds (NSF), and it was redeposited in November. However, the customer did not make any entry in their records during either October or November to reflect this.

Answer 2

The amount reported as outstanding checks on November 30 is P275,000.

Step-by-step explanation:

In order to determine the amount reported as outstanding checks on November 30, we need to consider the checks and charges recorded by the bank in November and the checks that cleared in November.

The checks and charges recorded by the bank in November include a November service charge of P5,000 and an NSF (non-sufficient funds) check of P20,000. These amounts need to be subtracted from the total credits to cash in all journals during November (P620,000).

The service charge made by the bank in October and recorded by the depositor in November (P10,000) should also be subtracted.

Finally, we need to consider the outstanding checks on October 31 that cleared in November (P230,000).

By subtracting all of these amounts, we find that the amount reported as outstanding checks on November 30 is P275,000.