Exercise 3 On December 31 the company's record showed a balance for the cash account of $ 12,504 The bank statement showed a balance at December 31 of $ 12,312

1.- Reconcile the balance of cash per depositors records and bank statement taking into account the following information

A check for payment of merchandises issued by our client Mr. Windy for $1,300 was rejected because of insufficient funds on the client's bank account.

The client Mr. Goodpayer paid directly on our bank account his invoice for $208 on December 28

A payment of $1,200 for merchandises (inventory) correctly written for $1,200 cleared the bank but was wrongfully recorded in the books of the company for $2,100.

2.- Prepare the journal entries derived from the reconciliation