On September 30 the bank statement of Fine Company showed a balance of $7,800. The following information was revealed by comparing the bank statement to the cash balance in Fine's accounting records:• Deposits in transit amounted to $3,150 • Outstanding checks amounted to $6,200 • A $550 check was incorrectly drawn on Fine's account • NSF checks returned by the bank were $750 • The bank service charge was $29 • Credit memo for $75 for the collection of one of the company's account receivable What is the true cash balance?
A. $5,300
B. $5,346
C. $7,096
D. $4,596
Answer: A
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