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Look at the table below showing an example of a checkbook ledger.

| Check Number | Date | Description | Amount Debited | Amount Credited | Balance |
|--------------|-------|-------------|----------------|-----------------|------------|
| | 5/7 | ATM | [tex]$200 | 560.00 | $[/tex]378.00 |
| 242 | 5/7 | Grocery | [tex]$32.50 | | |
| | 5/8 | Paycheck | | $[/tex]1,200.00 | [tex]$1,545.50 |

Adrienne has several receipts from recent transactions that she entered in her records. The receipts include an ATM receipt for a $[/tex]60.00 withdrawal (plus a [tex]$2.00 transaction fee), a grocery store receipt for $[/tex]32.50, and a [tex]$1,200 paycheck deposit slip.

When she finishes entering her transactions, Adrienne realizes that her balance is incorrect. Assuming that Adrienne's beginning account balance was $[/tex]320.00, why is her balance incorrect?

A. Adrienne forgot to include the [tex]$2.00 ATM transaction fee.
B. Adrienne did not use $[/tex]320.00 as her starting balance.
C. Adrienne deducted [tex]$23.50 from her balance instead of $[/tex]32.50.
D. Adrienne did not enter her ATM withdrawal.



Answer :

GinnyAnswer
Let's break down the situation step-by-step to determine why Adrienne's balance is incorrect.

1. Initial Information:
- Initial balance: \[tex]$320.00 - Transactions: - ATM withdrawal: \$[/tex]60.00
- ATM fee: \[tex]$2.00 - Grocery cost: \$[/tex]32.50
- Paycheck deposit: \[tex]$1200.00 2. Correct Balance Calculation: - Start with the initial balance: \$[/tex]320.00
- Subtract the ATM withdrawal: \[tex]$320.00 - \$[/tex]60.00 = \[tex]$260.00 - Subtract the ATM fee: \$[/tex]260.00 - \[tex]$2.00 = \$[/tex]258.00
- Subtract the grocery cost: \[tex]$258.00 - \$[/tex]32.50 = \[tex]$225.50 - Add the paycheck deposit: \$[/tex]225.50 + \[tex]$1200.00 = \$[/tex]1425.50

Therefore, the correct balance should be \[tex]$1425.50. 3. Considering the Mistake: - Suppose Adrienne mistakenly deducted \$[/tex]23.50 for groceries instead of \[tex]$32.50. - Revised grocery cost: \$[/tex]23.50

Using the revised numbers:
- Start with the initial balance: \[tex]$320.00 - Subtract the ATM withdrawal: \$[/tex]320.00 - \[tex]$60.00 = \$[/tex]260.00
- Subtract the ATM fee: \[tex]$260.00 - \$[/tex]2.00 = \[tex]$258.00 - Subtract the incorrect grocery cost: \$[/tex]258.00 - \[tex]$23.50 = \$[/tex]234.50
- Add the paycheck deposit: \[tex]$234.50 + \$[/tex]1200.00 = \[tex]$1434.50 Therefore, with the mistake, the balance would be \$[/tex]1434.50.

4. Determining the Discrepancy:
- Correct balance: \[tex]$1425.50 - Balance with mistake: \$[/tex]1434.50
- Difference: \[tex]$1434.50 - \$[/tex]1425.50 = \[tex]$9.00 Adrienne's incorrect balance is \$[/tex]9.00 higher than the correct balance.

Conclusion:
Adrienne's balance is incorrect because she deducted \[tex]$23.50 for groceries instead of \$[/tex]32.50, causing a discrepancy of \[tex]$9.00. The corrected balance should be \$[/tex]1425.50, but due to her mistake, it showed \[tex]$1434.50. Hence, the correct reason for the balance error is: Adrienne deducted \$[/tex]23.50 from her balance instead of \$32.50.

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