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 $ 56,928 Deposits 180,500 Checks processed (193,610 ) Service charges (80 ) NSF checks (1,700 ) Monthly payment on note, deducted directly by bank from account (includes $720 in interest) (3,820 ) Balance, July 31, 2021 $ 38,218 The companys general ledger account had a balance of $40,618 at the end of July. Deposits outstanding totaled $7,300 and all checks written by the company were processed by the bank except for those totaling $8,520. In addition, a $3,000 July deposit from a credit customer was recorded as a $300 debit to cash and credit to accounts receivable, and a check correctly recorded by the company as a $80 disbursement was incorrectly processed by the bank as a $800 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.