BACKHAUS COMPANYBank ReconciliationNovember 30, 2020CashBalanceperBank$14,367.90Add:DepositsinTransit2,530.2016,898.10Less:OutstandingChecksCk#Ck Amount3451$2,260.403470720.103471844.5034721,426.8034741,050.006,301.80Adjusted Cash Balance per Bank$10,596.30The adjusted cash balance per bank agreed with the cash balance per booksat November 30.The December bank statement showed the following checks and depositsChecksDepositsDateNumberAmountDateAmount1Dec3451$2,260.401Dec$2,530.202Dec3471844.504Dec1,211.607Dec34721,426.808Dec2,365.104Dec34751,640.7016Dec2,672.708Dec34761,300.0021Dec2,945.0010Dec34772,130.0026Dec2,567.3015Dec34793,080.0029Dec2,836.0027Dec3480600.0030Dec1,025.0030Dec3482475.5029Dec34831,140.00Total$18,152.90 31Dec3485540.80Total$15,438.70

The cash records per books for December showed the following:Cash ReceiptsCash Payments JournalJournalDateNumberAmountDateNumberAmountDateAmount1Dec3475$1,640.7020Dec3482$475.503Dec$1,211.602Dec34761,300.0022Dec34831,140.007Dec2,365.102Dec34772,130.0023Dec3484798.0015Dec2,672.704Dec3478621.3024Dec3485450.8020Dec2,954.008Dec34793,080.0030Dec34861,889.5025Dec2,567.3010Dec3480600.0028Dec2,836.0017Dec3481807.40Total$14,933.20 30Dec1,025.0031Dec1,690.40Total$17,322.10 The bank statement contained three memoranda:1.A credit of $4,145 dated 12/1/20 for the collection of a $4,000 note receivable plus interest of$160 less a collection fee of $15.2.A debit of $300 dated 12/27/2020 for an NSF check (#400) written by J. Doe, a customer. Thecheck was included in the 12/25 deposit. At December 31, the check had not been redeposited atthe bank.3.A debit of $572.80 dated 12/29/20 for an NSF check (#1000) written by D. Chagnon, a customer.The check was included in the 12/28 deposit. At December 31, the check had not beenredeposited in the bank.4.The bank charges two $25 fees for the bounced checks, posted on the same days as the relateddebit memoranda.At December 31, the cash balance per books was $12,985.20 and the cash balanceper bank statement was $20,304.30.The bank did not make any errors. InstructionsPrepare a bank reconciliation at December 31, 2020.Assess a $40 fee to each customer whose check bounced.Run a statement dated 12/31/20 for both Chagnon and Doe showing all open transactions as of the statement date