Blue Company is unable to reconcile the bank balance at January 31. Blue's reconciliation is as follows. Cash balance per bank Add: NSF check Less: Bank service charge Adjusted balance per bank Cash balance per books Less: Deposits in transit Add: Outstanding checks Adjusted balance per books $5,300 1,490 25 $6.765 $5,905 950 1,860 $6.815 Instructions (a) Prepare a correct bank reconciliation. (b) Journalize the entries required by the reconciliation