The following information pertains to a company's cash balance and bank reconciliation as of August 31:

Company balance before reconciliation $ 5,000

Checks outstanding $ 2,500

Notes collected by the bank $ 2,200

Service fee $ 50

Deposits outstanding $ 2,000

What is the correct cash balance for the company?

A) $7,150.

B) $5,150.

C) $7,650.

D) $7,250.

Answer: $7,150,