Hazelton Manufacturing prepares a bank reconciliation at the end of every month. At the end of May, the general ledger checking account showed a balance of $1,550 and the bank statement showed a bank balance of $1,255. Outstanding checks totaled $445 and deposits in transit were $245. The bank statement listed service charges of $125 and NSF checks totaling $370. The corrected cash balance is:

Multiple Choice

• $560.
• $685.
• $1,055.
• $1,255.