\begin{tabular}{|c|c|c|}
\hline Transaction & Debit (\[tex]$) & Credit (\$[/tex]) \\
\hline Beginning Balance & & 889.23 \\
\hline Fence repair & 75.86 & - \\
\hline Dry cleaning & 32.38 & - \\
\hline Paycheck & - & 140.91 \\
\hline Gift from cousin & - & 35.00 \\
\hline Car payment & 178.66 & - \\
\hline Tax refund & - & 66.18 \\
\hline New chair & 161.55 & - \\
\hline Ending Balance & & 682.87 \\
\hline
\end{tabular}

Katie's bank statement shows an ending balance of \$707.10. Which of the following is a possible explanation for the discrepancy?

A. Katie's neighbor paid for half of the fence repair, which Katie forgot to record.
B. Katie transposed the digits in the cost of the dry cleaning, which actually cost \$23.38.
C. Katie's new chair was on sale for 15% off, making it cost \$137.32, but Katie wrote down the before-sale price.
D. Katie's tax refund came in two equal-sized checks, but Katie only recorded one of them.



Answer :

Let's walk through the steps methodically:

1. Known values:
- Beginning Balance: \$889.23
- Fence repair: \$75.86
- Dry cleaning: \$32.38
- Paycheck: \$140.91
- Gift from cousin: \$35.00
- Car payment: \$178.66
- Tax refund: \$66.18
- New chair: \$161.55
- Ending Balance recorded by Katie: \$682.87
- Ending Balance per bank statement: \$707.10

2. Calculating Total Credits:
- Credits include the Beginning Balance, Paycheck, Gift, and Tax Refund.
[tex]\[ \text{Total Credits} = 889.23 + 140.91 + 35.00 + 66.18 = 1131.32 \][/tex]

3. Calculating Total Debits:
- Debits include Fence repair, Dry cleaning, Car payment, and New chair.
[tex]\[ \text{Total Debits} = 75.86 + 32.38 + 178.66 + 161.55 = 448.45 \][/tex]

4. Calculating Expected Balance:
- The Expected Balance is the Total Credits minus the Total Debits.
[tex]\[ \text{Expected Balance} = 1131.32 - 448.45 = 682.87 \][/tex]

This ties in with Katie's recorded Ending Balance of \[tex]$682.87. But the bank statement says her balance is \$[/tex]707.10.

5. Calculating the Discrepancy:
- The discrepancy between the bank's balance and Katie's balance:
[tex]\[ \text{Discrepancy} = 707.10 - 682.87 = 24.23 \][/tex]

Now, let's evaluate each possible explanation:

### Option a: Neighbor paid for half of the fence repair.
- Half of the fence repair cost is:
[tex]\[ \frac{75.86}{2} = 37.93 \][/tex]
- Corrected Balance:
[tex]\[ 682.87 + 37.93 = 720.80 \][/tex]
- This does not match the bank’s balance of \$707.10.

### Option b: Cost of dry cleaning should be \$23.38.
- Difference due to transposition:
[tex]\[ 32.38 - 23.38 = 9.00 \][/tex]
- Corrected Balance:
[tex]\[ 682.87 + 9.00 = 691.87 \][/tex]
- This does not match the bank’s balance of \$707.10.

### Option c: Chair was actually \$137.32 due to a 15% discount.
- Discount difference:
[tex]\[ 161.55 - 137.32 = 24.23 \][/tex]
- Corrected Balance:
[tex]\[ 682.87 + 24.23 = 707.10 \][/tex]
- This matches the bank’s balance.

### Option d: Tax refund was actually double.
- Double the received refund:
[tex]\[ 66.18 \times 2 = 132.36 \][/tex]
- Difference from recorded:
[tex]\[ 132.36 - 66.18 = 66.18 \][/tex]
- Corrected Balance:
[tex]\[ 682.87 + 66.18 = 749.05 \][/tex]
- This does not match the bank’s balance.

### Conclusion:
The only explanation where the corrected balance matches the bank’s balance of \[tex]$707.10 is Option c. Katie's new chair was on sale for 15% off, making it cost \$[/tex]137.32, but she wrote down the before-sale price.