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Sahara Company’s Cash account shows an ending balance of $650. The bank statement shows a $29 service charge and an NSF check for $150. A $240 deposit is in transit, and outstanding checks total $420. What is Sahara’s adjusted cash balance?

User Anki
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1 Answer

5 votes

Answer:

$470

Step-by-step explanation:

Given that

Ending balance of cash = $650

Service charge = $29

NSF check = $150

Deposit in transit = $240

Outstanding checks = $420

The computation of the adjusted cash balance is shown below:

= Ending balance of cash account + deposit in transit - outstanding checks

= $650 + $240 - $420

= $470

We considered only three above items only

User Tolyan
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