1. Compute the adjusted balance per books for Allen Company based on the following data:

Unadjusted balance per books $7,000

Bank service charges 200

The bank collected a customer receivable 2,000

NSF check from customer 1,150

The bookkeeper mistakenly recorded a check written for $1,000 as $100.

2.

Compute the adjusted balance per bank based on the following data:

Ending bank statement balance $3,000

Deposits in transit 800

Outstanding checks 300

3. How should outstanding checks be accounted for in a bank reconciliation?

4. How should deposits in transit be accounted for in a bank reconciliation?