Additionally, Westerson's cash records reflects a balance of $270,553 on January 31, 2020, while its bank statement balance was $255,000. A more detailed review reveals several reconciling items: i. Deposits in transit amounted to $25,000. ii. Included in the bank statement as at January 31, 2021 were the following memoranda: Credit Memorandum: a non-bearing interest note receivable for $5,000 was left at the bank for collection. The bank collected the amount which was credited to Westerson's account in January. Debit Memorandum: $250 for service charges for the month of January 2021. iii. Outstanding cheques: Cheque #255 for $2,550 Cheque #256 for $3,675 Cheque #257 for $675 iv. Review of the accounts revealed that cheque #260 for $5,255 was entered in the Westerson's records as $5,552. This was for utility expenses incurred and paid during January v. Included in the company deposits for January 2021 was a cheque for $2,500, but the bank has returned this cheque as NSF. You then tum your attention to Westerson Inc.'s accounts receivables and how the company accounts for its uncollectible / bad debt accounts. Your investigation reveals that the company uses the percentage-of-receivables basis under the allowance method. The following aging schedule has been provided: UNCOLLECTIBLE AGE INTERVAL BALANCE ($) % Not past due 1-30 days past due 31-60 days past due 61-90 days past due 91-80 days past due Over 1 80 days past due TOTAL 350,000.00 90,000.00 17,000.00 13,000.00 9,400.00 3,600.00 483,000.00 1% 3% 6% 10% 60% 80%