Melvin Company shows in its accounts a cash balance of $66,500 with Bank A and an overdraft of $1,500 with Bank B on December 31. Bank B regards the overdraft as, in effect, a loan to Melvin Company and charges interest on the overdraft balance. How would you report the balances with Banks A and B? Would your answer be any different if the overdraft arose as a result of certain checks that had been deposited and proved to be uncollectible and if the overdraft was cleared promptly by Melvin Company at the beginning of January?