Sahara Company's Cash account shows an ending balance of $ 840. The bank statement shows a $ 23 service charge and an NSF check for $ 80. A $ 280 deposit is in transit, and outstanding checks total $ 460. What is Sahara's adjusted cash balance?

$737

Explanation:

Given that,

Ending cash balance = $840

Service charge = $23

NSF check = $ 80

Amount of deposit in transit = $280

Outstanding checks = $460

Total adjusted cash balance:

= Ending cash balance - Service charge - NSF check

= $840 - $23 - $80

= $737

Note:

Outstanding checks decrease the bank side of the reconciliation.

As these are the checks which are outstanding in nature which means not yet cleared as not presented for payment so it is shown as decrease in bank side while doing reconciliation.