The cash account and the December bank statement of Gomez Company showed the following: deposits made by Gomez Company during December,$90,000;deposits reflected on the December bank statement,$88,000;and deposits in transit on November 30,$5,000.What was the amount of deposits in transit at the end of December?

A) $10,000.
B) $7,000.
C) $5,000.
D) $2,000.

Deposits in Transit

Deposits in Transit are amounts that have been received and recorded by a business but not yet reflected in its bank statement.

Bank Statement

A summary of financial transactions that have occurred over a period of time in an account held by a person or business with a financial institution.

Cash Account

A financial account that tracks the flow of cash transactions, including receipts and payments, within a company.