AP$6-1$A $($Preparation of bank reconciliation$)$ On May $31,$ JB Games Ltd$.$ received its bank statement from the East Coast Savings Bank showing that JB had a balance of $$12,200.$ The company$$s general ledger showed a cash balance of $$8,600$ at that date. A comparison of the bank statement and the accounting records revealed the following information:

A cheque from one of JB$$s customers in the amount of $$1,120$ that had been deposited during the last week of May was returned with the bank statement as NSF$.$

Bank service charges for the month were $$55.$

The company had written and mailed out cheques with a value of $$4,235$ that had not yet cleared the bank.

Cheque #$791,$ which was a payment for advertising expenses of $$230,$ was incorrectly recorded in the general ledger as $$320.$

During the month, one of JB$$s customers paid its account using an electronic funds transfer. The payment was for $$2,100.$

The cash receipts for May $31$ amounted to $$1,650$ and had been deposited in the night drop slot at the bank on the evening of May $31.$ These were not reflected on the bank statement for May.

Required

Prepare the bank reconciliation for JB at May $31.$

What cash should JB report on its statement of financial position as at May $31?$

Prepare the journal entries necessary as a result of the bank reconciliation prepared in part $$a$.$