Osage Farm Supply had poor internal control over its cash transactions. Facts about the company's cash position at November 30 are described as follows The accounting records showed a cash balance of $35,400, which included a deposit in transit of $1,245. The balance indicated in the bank statement was $20,600. Included in the bank state ment were the following debit and credit memoranda Debit Memoranda: Check from customer G. Davis, deposited by Osage Farm Bank service charges for November.... . .. . .. .. . . . . . Credit Memorandum: Proceeds from collection of a note receivable from Regal Farms, which Osage Farm Supply had left with the bank's collection department...... $6,255 . . . . .. .. Outstanding checks were as follows Check No Amount $ 400 524 176 5,000 Bev Escola, the company's cashier, has been taking portions of the company's cash receipts for several months. Each month, Escola prepares the company's bank reconciliation in a manner that conceals her thefts. Her bank reconciliation for November was as follows