Jones Company had checks outstanding totaling $5,400 on its June bank reconciliation. In July, Jones Company issued checks totaling $38,900. The July bank statement shows that $26,300 in checks cleared the bank in July. A check from one of Jones Company's customers in the amount of $300 was also returned marked "NSF." The amount of outstanding checks on Jones Company's July bank reconciliation should be ________.

Checks written in prior mo. And o/s 5,400
July checks 38,900
Less checks that cleared (26,300)

This should be the outstanding cks 18,000

That's the way I would do it. See if it makes sense.