Larson Company Gathered the Following Reconciling Information in Preparing Its

Multiple Choice

Larson Company gathered the following reconciling information in preparing its August bank reconciliation: $$\begin{array} { l r } \text { Cash balance per books, } 8 / 31 & \$ 34,800 \\\text { Deposits in transit } & 1,200 \\\text { Bank charge for check printing } & 160 \\\text { Outstanding checks } & 16,000 \\\text { NSF check } & 1,360\end{array}$$ Use the following tabular analysis to determine the required adjustments to Larson's accounts:

A) Cash would increase by $1200.
B) Accounts Receivable would decrease by $1360.
C) Accounts Payable would increase by $160.
D) Cash would decrease by $1520.