Question 38

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Smothers Company assembled the following information in completing its March bank reconciliation: balance per bank $7,690; outstanding checks $1,700; deposits in transit $2,600; NSF check $1300; bank service charge $40; cash balance per books $8,800. As a result of this reconciliation, Smothers will

Select one:

a. reduce its cash account by $40

b. reduce its cash account by $170

c. increase its cash account by $90.

d. The answer does not exist

e. reduce its cash account by $900