In preparing its May $31,2025$ bank reconciliation, Woody Co$.$ has the following information available:

Balance per bank statement, $\frac{5}{31}\frac{?}{25}$

$$40,000$

Deposit in transit, $5/31/25$

$5,400$

Outstanding checks, $\frac{5}{31}\frac{?}{25}$

$4900$

Note collected by bank in May

$1,250$

The correct balance of cash at May $31,2025$ is

$$40,500$

$$41,750.$

$$39,250.$

$$45,400.$