The Dinho Corporation Identified the Following Data When Preparing Their

Multiple Choice

The Dinho Corporation identified the following data when preparing their April bank reconciliation: $$\begin{array} { l r } \text { Bank statement balance } & \$ 45,000 \\\text { Dinho's book balance (before adjustments) } & ? \\\text { Outstanding checks } & 4,500 \\\text { NSF checks } & 1,400 \\\text { Service charges } & 300 \\\text { Deposits in transit } & 5,000 \\\text { Interest earned on checking account } & 25\end{array}$$ In addition, Dinho incorrectly recorded a deposit in its books in the amount of $1,000.The correct amount was recorded by the bank as $1,200. What is the net amount of the adjustment to Dinho's cash balance as a result of the bank reconciliation?

A) $1,675 increase
B) $1,700 increase
C) $1,675 decrease
D) $1,475 decrease