Tang Company Assembled the Following Information in Completing Its June

Multiple Choice

Tang Company assembled the following information in completing its June bank reconciliation: balance per bank HK$42,920; outstanding checks HK$24,650; deposits in transit HK$27,500; NSF check HK$4,480; bank service charge HK$170; cash balance per books HK$50,420. As a result of this reconciliation, Tang will

A) reduce its cash account by HK $7,500.
B) increase its cash account by HK $2,850.
C) increase its cash account by HK $4,480.
D) reduce its cash account by HK $4,650.