Russel Company Assembled the Following Information in Completing Its March

Multiple Choice

Russel Company assembled the following information in completing its March bank reconciliation: $$\begin{array} { l r } \text { Balance per bank } & \$ 19,100 \\\text { Outstanding checks } & \$ 3,875 \\\text { Deposits in transit } & \$ 6,250 \\\text { NSF check } & \$ 400 \\\text { Bank service charges } & \$ 125 \\\text { Cash balance per books } & \$ 22,000\end{array}$$ As a result of this reconciliation, Russel will

A) reduce its cash account by $2,375.
B) reduce its cash account by $125.
C) increase its cash account by $275.
D) reduce its cash account by $525.