At the end of the month of July you close the books of your company and received the bank statement. You are ready to start with the Adjusting journal entries and realized that a bank reconciliation must be performed.

First you collect the data from June 30^th reconciliation as follows:

Balance per Bank	$	10,000
add: Deposits in Transit	$	1,800
deduct: Outstanding Cheques	$	(2,200	)
Balance per Books	$	9,600

Second you close your update your Cash and bank account with all transactions recorded before AJE and you have:

Balance July 31	$	12,000
Deposits	$	7,300
Cheques	$	4,800

Third you look at the bank statement provided by your bank and you see the following:

Balance July 31	$	12,430
Deposits	$	6,000
Cheques	$	4,000
Note collected	$	1,000
Bank service charge	$	20
NSF cheque	$	150
Interest received	$	200
Autowithdrawals	$	500

Which of the following adjusting journal entries is required after the bank reconciliation has been prepared?

Multiple Choice

A. Dr. Interest revenue $200 Cr. Cash $200 (to reflect interest earned on bank balance).

B. Dr Cash $150 Cr. Accounts Receivables $150 (to reflect the NSF cheque)

C. None of the other alternatives are correct

D. Dr. Cash $500 Cr. Phone Expenses $500 (to reflect the automatic payment of the phone - autowithdraw).

E. Dr. bank fees $20. Cr. Cash $20 (to reflect bank fees for the month)

from previous attempts I know the answer is not B or C