The Cash account in the ledger of Hensley, Inc. showed a balance of $3,850 at June 30. The bank statement, however, showed a balance of $5,650 at the same date. The only reconciling items consisted of a $600 deposit in transit, a bank service charge of $8, and a large number of outstanding checks.

What is the "adjusted cash balance" at June 30?

A.$3,250.

B.$2,408.

C.$5,650.

D.$3,842.

What is the total amount of the outstanding checks at June 30?

A.$2,408.

B.$2,400.

C.$2,634

D.$3,250.