Grayson Company had the following information related to its bank balance and its book balance at October 31, 2018. What is the company's true cash balance on this date?

Unadjusted bank balance

$8,000

Unadjusted book balance

7,445

Outstanding checks

1,500

Deposits in transit

920

Debit memo for bank service charge

35

Credit memo for interest earned

10

a.$6,840

b.$7,395

c.$7,420

d.$8,000