In preparing its May 31, 2020 bank reconciliation, Waterway Industries has the following information available:

Balance per bank statement, 5/31/20 $38000

Deposit in transit, 5/31/20 5700

Outstanding checks, 5/31/20 3500

Note collected by bank in May 1260

The correct balance of cash at May 31, 2020 is

$41460.

$43700.

$38940.

$40200.