On October $31,2024,$ Damon Company$$s general ledger shows a cash account balance of $$8,397.$ The company$$s cash receipts for the month total $$74,320,$ of which $$71,295$ has been deposited in the bank. In addition, the company has written checks for $$3,467,$ of which $$1,982$ has been processed by the bank.

The bank statement reveals an ending balance of $$11,727$ and includes the following items not yet recorded by Damon: bank service fees of $$150,$ note receivable collected by the bank of $$5,000,$ and interest earned on the note of $$320.$ After closer inspection, Damon realizes that the bank incorrectly charged the company$$s account $$300$ for an automatic withdrawal that should have been charged to another customer$$s account. The bank agrees to the error.

Required:

$1.$ Prepare a bank reconciliation to calculate the correct ending balance of cash on October $31,2024.$

$2.$ Record the necessary entries to adjust the balance for cash.