On May $31,$ Sheridan Limited had a cash balance per books of $$14,600.$ The bank statement from Community Bank on that date showed a balance of $$17,500.$ A comparison of the bank statement with the company's Cash account revealed the following:

The bank statement included a bank service charge of $$80.$

The bank statement included electronic collections totalling $$4,450.$ These were not previously recorded.

Outstanding cheques at April $30$ totalled $$3,640.$ Of these, $$2,710$ worth cleared the bank in May. There were $$1,820$ of cheques written in May that were still outstanding on May $31.$

Included with the cancelled cheques was a cheque issued by O Bearne Inc. for $$1,210$ that was incorrectly charged to Sheridan by the bank.

On May $31,$ the bank statement showed a returned $($NSF$)$ cheque for $$970$ issued by a customer in payment of its account. In addition, the bank charged an $$80$ processing fee for this transaction.

The May $31$ deposit of $$1,960$ was not included in the deposits on the May bank statement. The deposit had been placed in the bank's night deposit chute on May $31.$

Your answer is partially correct.

Prepare any journal entries required from the reconciliation. $($List all debit entries before credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select $"$No Entry" for the account titles and enter O for the amounts.$)$

Date Account Titles and Explanation

May $31\sqrt[\phantom{2}]{C}$ash

Debit

Credit

$($To record EFT collections$)$

$31$

Accounts Receivable $$

$$

$$

$=$

$$

$($To record NSF cheque$)$

$31$

$$

$$

$$

$($To record bank service charge$)$