Little Rock Co.'s bank reconciliation as of February 28 is shown below.

Bank balance $37,643 Book balance $38,153

+ Deposit in transit 2,950 Note collection +745

- Outstanding checks -1,730 Check printing -35

Adjusted book balance $38,863 $38,863

The adjusting journal entries that Little Rock must record as a result of the bank reconciliation include:

A. Debit Note Payable $745; credit Cash $745.

B. Debit Cash $745; credit Note Receivable $745.

C. Debit Cash $2,950; credit Sales $2,950.

D. Debit Cash $2,950; credit Accounts Receivable $2,950.

E. Debit Miscellaneous Expense $35; credit Accounts Payable $35.