Allen Corp. has a checking account at the $2$nd National Bank.

The February $28$ bank statement included the following information:

BANK RECONCILIATION

The company's general ledger account had a balance of $9,310$ at the end of February.

Deposits in transit $,2,500$

Checks outstanding $640$

In addition, a $$400$ deposit from a credit customer was recorded as a $$40$ debit to cash and

the same amount as a credit to accounts receivable.

a Prepare a bank reconciliation for the month of February.

b Prepare any adjusting entries that are needed.

BANK RECONCILIATION

ADJUSTING ENTRIES