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Tunes Company had checks outstanding totaling $12800 on its June bank reconciliation. In July Tunes Company issued checks totaling $78700. The July bank statement shows that $76600 in checks cleared the bank in July. A check from one of Tunes Company's customers in the amount of $1600 was also returned marked "NSF." The amount of outstanding checks on Tunes Company's July bank reconciliation should be
A) $2100.
B) $13300.
C) $14900.
D) $16500.
NSF Check
Stands for Non-Sufficient Funds Check, which is a check that cannot be processed because the writer’s account does not have enough funds.
Outstanding Checks
Checks that have been written and recorded in the issuing account but have not yet been cashed or cleared by the bank.
Checks Outstanding
Checks outstanding refer to checks that have been written and recorded in accounting books but have not yet been cashed or cleared by the bank.
- Attain an understanding of the process and crucial aspects of bank reconciliations.
- Learn the fundamentals of outstanding checks and their implications on cash reserves.
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Learning Objectives
- Attain an understanding of the process and crucial aspects of bank reconciliations.
- Learn the fundamentals of outstanding checks and their implications on cash reserves.
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