Following is a bank reconciliation for Pizza Express for May 31, 2014:

Because of limited funds, Pizza Express employed only one accountant who was responsible for receiving cash, recording receipts and disbursements, preparing deposits, and preparing the bank reconciliation. The accountant left the company on June 8, 2014, after preparing the May 31 bank reconciliation. His replacement compared the checks returned with the bank statement to the cash disbursements journal and found the total of outstanding checks to be $3,495.

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Cash Account Bank Statement Balance as of 5/31/2014 Deposit in transit Outstanding checks Note collected by bank S 23,38020,275 4,475 (425) 2,445 50) Automatic payment on loan (1,450) S 24,325$24,325 5/31/2014