On September 30, the bank statement of Fine Company showed a balance of $10,850. The following information was revealed by comparing the bank statement to the cash balance in Fine's accounting records:

1. (1) deposits in transit amounted to $4,515
2. (2) outstanding checks amounted to $8,330
3. (3) a $690 check was incorrectly drawn on Fine's account
4. (4) NSF checks returned by the bank were $1,070
5. (5) bank service charge was $39
6. (6) credit memo for $145 for the collection of one of the company's account receivable

Based on the above information, the true cash balance was:

Multiple Choice

• $6,761.
• $8,746.
• $7,725.
• $7,831.