Horizon Corporation is preparing a bank reconciliation and has identified the following potential reconciling items. For each item, indicate if it is (1) added to balance per bank statement, (2) deducted from balance per bank statement, (3) added to balance per books, or (4) deducted from balance per books.

(a) Deposit in transit $5,500.

(b) Bank service charges $25.

(c) Interest credited to Hortons account $31.

(d) Outstanding checks $7,422.

(e) NSF check returned $377.