Bank reconciliation

Identify each of the following reconciling items as:

an addition to the cash balance according to the bank statement

a deduction from the cash balance according to the bank statement

an addition to the cash balance according to the company's records

a deduction from the cash balance according to the company's records

(None of the transactions reported by bank debit and credit memos have been recorded by the company.)

Item	Treatment
1. Bank service charges, $50.	Addition to the balance per bankAddition to the balance per company's recordsDeduction from the balance per bankDeduction from the balance per company's records
2. Check of a customer returned by bank to company because of insufficient funds, $520.	Addition to the balance per bankAddition to the balance per company's recordsDeduction from the balance per bankDeduction from the balance per company's records
3. Check for $345 incorrectly recorded by the company as $435.	Addition to the balance per bankAddition to the balance per company's recordsDeduction from the balance per bankDeduction from the balance per company's records
4. Check for $200 incorrectly charged by bank as $2,000.	Addition to the balance per bankAddition to the balance per company's recordsDeduction from the balance per bankDeduction from the balance per company's records
5. Deposit in transit, $4,250.	Addition to the balance per bankAddition to the balance per company's recordsDeduction from the balance per bankDeduction from the balance per company's records
6. Outstanding checks, $5,420.	Addition to the balance per bankAddition to the balance per company's recordsDeduction from the balance per bankDeduction from the balance per company's records
7. Note collected by bank, $5,300.	Addition to the balance per bankAddition to the balance per company's recordsDeduction from the balance per bankDeduction from the balance per company's records