Dance Town Academy The items listed below were identified while preparing a bank reconciliation for the company's checking account as of March 31.

Cash balance according to the general ledger	?
Bank statement balance	$18,500
Outstanding checks	2,700
Customer's bounced check	350
Bank service charges	100
Deposits in transit	1,000
Interest earned on the checking account	60

Refer to Dance Town Academy. How will the deposits in transit be handled on a bank reconciliation?

a.subtract from the balance from the company records

b.add to the balance from the company records

c.subtract from the bank statement balance

d.add to the bank statement balance