Lee Corporation’s checkbook balance on December 31, year 1, was $4,000. In addition, Lee held the following items in its safe on December 31: | Check payable to Lee Corporation, dated 1/2/Y2, not included in 12/31 checkbook balance | $1,000 | | Check payable to Lee Corporation, deposited 12/20, and included in 12/31 checkbook balance, but returned by bank on 12/30, stamped "NSF." The check was redeposited 1/2/Y2, and cleared 1/7. | 200 | | Postage stamps received from mail-order customers | 75 | | Check drawn on Lee Corporation’s account, payable to vendor, dated and recorded 12/31, but not mailed until 1/15/Y2 | 500 |
The proper amount to be shown as Cash on Lee’s balance sheet at December 31, year 1, is
A. $4,875B. $4,300 C. $3,800 D. $4,000 |
