Bank reconciliation and entries PR 8-3A The cash account for American Medical Co. at April 30 indicated a balance of $334,985. The bank statement indicated a balance of $388,600 on April 30. Comparing the bank statement and the accompanying canceled checks and memos with the records revealed the following reconciling items: a. Checks outstanding totaled $61,280. b. A deposit of $42,500, representing receipts of April 30, had been made too late to OBJ.S sted balance: xcel appear on the bank statement. c. The bank collected $42,000 on a $40,000 note, including interest of $2,000. d. A check for $7,600 returned with the statement had been incorrectly recorded by eneral edger American Medical Co. as $760. The check was for the payment of an obligation to Targhee Supply Co. for a purchase on account. e. A check drawn for $240 had been erroneously charged by the bank as $420. f. Bank service charges for April amounted to $145. Instructions 1. Prepare a bank reconciliation. 2. Journalize the necessary entries. The accounts have not been closed. 3. If a balance sheet is prepared for American Medical Co. on April 30, what amount should be reported as cash