Question

Paul just received his bank statement in the mail. The ending balance on the account shows that he has $385.22 available. However, last night on the way to the movies, Paul stopped at the ATM and withdrew $20. The ATM receipt showed a balance of only $174.38. What are some possible reasons for the difference in balances?

Answer 1

The difference is $210.84 in Pending transactions.

Answer 2

Answer:

The most obvious difference would be outstanding checks. When the bank statement was mailed to him, he may have had some checks that had not yet cleared. Another reason could be that Paul made some withdrawals or purchases between the time the statement was mailed and the trip to the movies. >3<

I had a hard time finding it out too, but I hope this helps<33