In preparing its May 31, 2012 bank reconciliation, Catt Co. has the following information available:

Balance per bank statement, 5/31/12 $35,000

Deposit in transit, 5/31/12 $5,400

Outstanding checks, 5/31/12 $4,900

Note collected by bank in May $1,250

The correct balance of cash at May 31, 2012 is A)$40,400 B)$34,250 C)$35,500 D)$36,750