Harrison Company maintains a checking account at the First National City Bank. The bank provides a bank statement along with canceled checks on the last day of each month. The July $2021$ bank statement included the following information:

Balance, July $1,2021$ $ $56,553$

Deposits $180,200$

Checks processed $(193,310)$

Service charges $(65)$

NSF checks $(1,550)$

Monthly payment on note, deducted directly by bank from account

$($includes $$570$ in interest$)(3,670)$

Balance, July $31,2021$ $ $38,158$

The company$$s general ledger account had a balance of $$40,108$ at the end of July. Deposits outstanding totaled $$7,000$ and all checks written by the company were processed by the bank except for those totaling $$8,490.$ In addition, a $$2,700$ July deposit from a credit customer was recorded as a $$270$ debit to cash and credit to accounts receivable, and a check correctly recorded by the company as a $$65$ disbursement was incorrectly processed by the bank as a $$650$ disbursement.

Required:

$1.$ Prepare a bank reconciliation for the month of July.

$2.$ Prepare the necessary journal entries at the end of July to adjust the general ledger cash account.