The Richard's Red Company maintains a checking account at the Bank of the

North.

The bank statement for the month of October 2019 indicated the

following: balance on October 1, 2019 was $32,690, deposits

for

October totaled

$86,000, checks paid in October totaled $75,200, service charges for October

totaled $350; October NSF checks totaled $1,600; a monthly loan payment

deducted by the bank directly from the company's bank account totaled $3,400;

and the ending balance on October 31, 2019

totaled $38,140. At the end of

October 2019

, Richard's accounting records indicated a balance in its checking

account of $42,544. Deposits in tra

nsit were $4,224 and outstanding checks

totaled $5,620. In addition, a check for $500 to purchase office furniture was

incorrectly recorded by the company as a $50 disbursement. The bank correctly

processed the check during October. Assuming the company

has no other cash,

the amount Richard's Red would report for cash as a current asset on its October

31, 2019 balance sheet is

:

A)

$38,140

B)

$42,544

C)

$36,744

D)

$41,148