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$21,460; outstanding checks HK$12,325; deposits in transit HK$13,750; NSF check HK$2,240; bank service charge HK$85; cash balance per books HK$25,210.As a result of this reconciliation, Tang will

A) Reduce its cash account by $3,750.
B) Increase its cash account by $1,425.
C) Increase its cash account by $2,240.
D) Reduce its cash account by ₤2,325.