he following data were obtained from the bank statement and from the process of reconciling it: Bank service charges = $20 Deposit outstanding = $150 Interest earned on the bank account = $10 Checks outstanding = $400 Which items should be deducted from and added to the bank balance in completing the reconciliation?

Deduct checks outstanding; add deposit outstanding.

Deduct interest earned; add deposit outstanding.

Deduct deposit outstanding; add checks outstanding.

Deduct checks outstanding; add service charges and deposit outstanding.