On May 31, 2017, Terrell Ltd. had a cash balance per books of 6,781.50. The bank statement from Home Town Bank on that date showed a balance of 6,404.60. A comparison of the statement with the Cash account revealed the following facts. 1. The statement included a debit memo of 40 for the printing of additional company checks ( Service charge Expense). 2. Cash sales of 836.15 on May 12 were deposited in the bank. The cash receipts journal entry and the deposit slip were incorrectly made for 886.15. The bank credited Terrell Company for the correct amount. 3. Outstanding checks at May 31 totaled 576.25. Deposits in transit were 1,916.15. 4. On May 18, the company issued check No. 1181 for 685 to Barry Dietz on account. The check, hich cleared the bank in May, was incorrectly journalized and posted (Recorded) by Terrell for 658. 5. A 2,500 note receivable was collected by the bank for Terrell on May 31 plus 80 interest. The bank charged a collection fee of 20. No interest has been accrued on the note 6. Included with the cancelled checks was a check issued by Bridges plc to Jon Newton for 800 that was incorrectly charged to Terrell by the bank. 7. On May 31, the bank statement showed an NSF charge of 680 for a check issued by Sandy Grifton, a customer, to Terrell on account Instructions: Decide what the accountant of the Terrell Ltd. must do with the following when preparing the bank reconciliation for the month of May: 1- Outstanding checks and deposits in transit? (1 mark) 2- Collection of Notes receivables, interest earned, and collection fee? (1 mark) 3- The error that has been mentioned in point 2? (1 mark) 4- The entry for the error that has been mentioned in point 4? (1 marks) (4 Points)