Wilson Company gathered the following reconciling information in preparing its August bank reconciliation:

Bank statement balance at August 31	$ 5,000
Deposits in transit	$ 1,000
Interest earned on the bank account	$ 10
Bank service charges	$ 50
Checks outstanding	$1,500
Customer's NSF check returned by the bank	$ 25

Question: What is the correct cash balance on August 31?

Select one:

a. $5,065

b. $5,500

c. $5,000

d. $4,500

e. $5,565