E5-37B. (Learning Objective 3: Classifying bank reconciliation items) The following items appear on a bank reconciliation.

Classify each item as

(a) an addition to the book balance,

(b) a subtraction from the book balance,

(c) an addition to the bank balance, or

(d) a subtraction from the bank balance.

1. ___ Outstanding checks 2. ___ Bank error: The bank credited our account for a deposit made by another bank customer.

3. ___ Service charge 4. ___ Deposits in transit 5. ___ NSF check 6. ___ Bank collection of a note receivable on our behalf 7. ___ Book error: We debited Cash for €300. The correct debit was €3,000.