On August 31, 2024, the general ledger of Ballet Shoes shows a balance for cash of $7,894. Cash receipts yet to be deposited into the checking account total $3,347. The companys balance of cash does not reflect a debit card payment for the purchase of postage expense ($81) or an electronic funds transfer for rent expense ($1,375). The bank statement also revealed the company recorded a debit card transaction for supplies of $406, but the actual amount was $506. These amounts are included in the balance of cash of $2,991 reported by the bank as of the end of August.

Required: 1. Prepare a bank reconciliation to calculate the correct ending balance of cash on August 31, 2024. 2. Record the necessary entry(ies) to adjust the balance for cash.