E8-8 The following items could appear on a bank reconciliation: a. Outstanding cheques b. Deposits in transit for current month c. NSF cheque d. Bank collection of a note receivable on the company's behalf e. Bank credit memo for interest earned on bank balance f. Bank debit memo for service charge g. Book error: We credited Cash for $200. The correct credit was $2,000 h. Bank error: The bank decreased our account for a cheque written by another customer i. Outstanding cheques from the previous month that are still outstanding j. EFT payment by a customer k. Bank error in recording a deposit for $464 should have been $446 Required 1. Classify each item as (1) an addition to the book balance, (2) a subtraction from the book balance, (3) an addition to the bank balance, or (4) a subtraction from the bank balance. 2. Indicate (a) the items that will result in an adjustment to the company's records, and (b) why the other items do not require an adjustment. 3 Classifying bank reconciliation items