Identify each of the following reconciling items as:

(a) An addition to the cash balance according to the bank statement,

(b) A deduction from the cash balance according to the bank statement,

(c) An addition to the cash balance according to the company’s records, or

(d) A deduction from the cash balance according to the company’s records. (None of the transactions reported by bank debit and credit memos have been recorded by the company.)

1. Bank service charges, $15.

2. Check drawn by company for $160 but incorrectly recorded as $610.

3. Check for $500 incorrectly charged by bank as $5,000.

4. Check of a customer returned by bank to company because of insufficient funds, $3,000.

5. Deposit in transit, $15,500.

6. Outstanding checks, $9,600.

7. Note collected by bank, $10,000.