A business had $10,800 in cheques outstanding from its June 30 bank reconciliation. During the month of July, the business issued cheques totalling $41,900. The July bank statement shows that $48,200 in cheques cleared the bank during the month. A cheque from one of its customers in the amount of $500 was returned marked "NSF." The amount of outstanding cheques on the business's July 31 bank reconciliation should be

Select one:

a. $3,500

b. $4,500

c. $5,300

d. $4,000

e. $5,000