At March 31, Cummins Co. had a balance in its cash account of $11,400. At the end of March the company determined that it had outstanding checks of $1,325, deposits in transit of $790, a bank service charge of $55, and an NSF check from a customer for $240. The true cash balance at March 31 is:

Adjusted Balance  11,105

Explanation:

CASH

Begining Balance11,400

Service Charge     -55

NSF                   -240    

Adjusted Balance  11,105

To get the ending balance, we adjust for the unknow transactiosn for hte company.

The company knows how many check it write and how much it deposit. So we don't adjust for that

The company's accounting doesn't know the check of acustomer bounce and the amount fo the bank services charge thus, we adjust for that

enjoy the dunce cap fool