Deng Company Gathered the Following Reconciling Information in Preparing Its

Multiple Choice

Deng Company gathered the following reconciling information in preparing its June bank reconciliation: $$\begin{array} { l r } \text { Cash balance per books, } 6 / 30 & \$ 12,600 \\\text { Deposits in transit } & 2,300 \\\text { Notes receivable and interest collected by bank } & 5,060 \\\text { Bank charge for check printing } & 200 \\\text { Outstanding checks } & 6,000 \\\text { NSF check } & 1,420\end{array}$$ Use the following tabular analysis to determine the required adjustment for the outstanding checks:

A) Decrease Cash $6000 decrease Accounts Receivable $12000.
B) Increase Cash $6000 increase Revenue $6000.
C) Increase Accounts Receivable $6000 increase Revenues $6000.
D) No adjustment is needed to Deng's accounts for the outstanding checks.