Exercise 9.6 (Algo) Preparing a bank reconciliation statement. LO 9-5, 9-6 Baxter Office Supplies recelved a bank statement showing a balance of $67,505 as of March 31, 20X1. The firm's records showed a book balance of $69,427 on March 31 . The difference between the two balances was caused by the following items. 1. A debit memorandum for $40, which covers the bank's collection fee a the note (item 6 ). 2. A deposit in transit of $3,200. 3. A check for $238 issued by another firm that was mistakenly charged to Baxter's account. 4. A debit memorandum for an NSF check of $6,085 issued by Watson Construction Company, a credit customer. 5. Outstanding checks: Check 3782 for $1,700; Check 3840 for $141. 6. A credit memorandum for a $5,800 noninterest-bearing note receivable that the bank collected for the firm. Required: 1. Prepare a bank reconciliation statement for the firm as of March 31. 2. Prepare the necessary journal entries for March 31, 20X1 from the statement. Complete this question by entering your answers in the tabs below. Prepare the necessary journal entries for March 31, 20xi from the statement, Note: if no entry is required for a particular transaction, select "No journal entry required" in the first account fieid. Complete this question by entering your answers in the tabs below. Prepare the necessary journal entries for March 31, 20X1 from the statement. Note: If no entry is required for a particular transaction, select "No joumal entry required" in the first account field