E5-16 Bank reconciliation Identify each of the following reconciling items as: (a) an addition to the cash balance ac- cording to the bank statement, (b) a deduction from the cash balance according to the bank statement, (c) an addition to the cash balance according to the companys records, or (d) a deduction from the cash balance according to the companys records. (None of the transactions reported by bank debit and credit memos have been recorded by the company.) 1. Bank service charges, $36. 2. Check drawn by company for $375 but incorrectly recorded by company as $735. 3. Check for $50 incorrectly charged by bank as $500. 4. Check of a customer returned by bank to company because of insufficient funds, $1,200. 5. Deposit in transit, $12,375. 6. Outstanding checks, $14,770. 7. Note collected by bank, $10,600.

E5-17 Entries based on bank reconciliation Which of the reconciling items listed in Exercise 5-16 are required to be recorded in the companys accounts?