Correct the following mistakes.

Question 3 The following information is for Blossom Video Company: 1. Cash balance per bank, July 31, $7,000. 2. July bank service charge not recorded by the depositor, $20. 3. Cash balance per books, July 31, $7,000. 4. Deposits in transit, July 31, $1,000. 5. Bank collected $500 note for Blossom in July, plus interest $32, less fee $12. The collection has not been recorded by Blossom, and no interest has been accrued. 6. Outstanding cheques, July 31, $500.Prepare a bank reconciliation at July 31. (List items that increase balance as per bank & books first.) BLOSSOM VIDEO COMPANY Bank Reconciliation July 31 Cash balance per bank statement 7,000 Add Deposits in transit 1,000 8,000 Less Outstanding cheques 500 Adjusted cash balance per bank 7,500 Cash balance per books 7,000 Add Collection of note receivable 500 Collection of interest revenue 32: 532 7,532 x . Less Bank service charge 20 Adjusted cash balance per books 7,500Journalize the adjusting entries at July 31 on the books of Blossom Video Company. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) No. Account Titles and Explanation Debit Credit July 31 Bank Charges Expense 20 Cash 20 (To record the bank service charge) July 31 Cash 532 Notes Receivable 500 Interest Revenue 32: (To record the collection of the note)