On October 31, 2015, Damon Companys general ledger shows a checking account balance of $8,442. The companys cash receipts for the month total $74,620, of which $71,370 has been deposited in the bank. In addition, the company has written checks for $72,512, of which $71,252 has been processed by the bank.

The bank statement reveals an ending balance of $12,822 and includes the following items not yet recorded by Damon: bank service fees of $300, note receivable collected by bank of $6,500, and interest earned on the account balance plus from the note of $1,070. After closer inspection, Damon realizes that the bank incorrectly charged the companys account $900 for an automatic withdrawal that should have been charged to another customers account. The bank agrees to the error.