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.
1. Check drawn by company for $300 but incorrectly recorded as $3,000.
2. Check of a customer returned by bank to company because of insufficient funds, $775.
3. Bank service charges, $35.
4. Check for $129 incorrectly charged by bank as $219.
5. Outstanding checks, $6,137.68.
6. Deposit in transit, $7,500.
7. Note collected by bank, $12,000.