The Cash account in the records of Hensley, Incorporated showed a balance of $3,700 at June 30. The bank statement, however, showed a balance of $5,300 at the same date. The only reconciling items consisted of a $550 deposit in transit, a bank service charge of $7, and a large number of outstanding checks.

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

Multiple Choice

• $3,150.

• $2,157.

• $3,693.

• $5,300.