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 memoranda have been recorded by the company.)objs. 4, 5

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1. Bank service charges, $48. 2. Outstanding checks, $8,125.50. 3. Deposit in transit, $12,200. 4. Note collected by bank, $8,750. 5. Check drawn by company for $150 but incorrectly recorded as $510. 6. Check for $200 incorrectly charged by bank as $2,000. 7. Check of a customer returned by bank to company because of insufficient funds, $1,200.