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. Bank service charges, $50.
2. Check of a customer returned by bank to company because of insufficient funds, $520.
3. Check for $345 incorrectly recorded by the company as $435.
4. Check for $200 incorrectly charged by bank as $2,000.
5. Deposit in transit, $4,250.
6. Outstanding checks, $5,420.
7. Note collected by bank, $5,300.