P$7\mathrm{.}13$B $($LO$4)$ AP South Hampton Pool Supplies' May $31,2024,$ bank balance was $$7,350.$ The company's cash balance at May $31$ was $$8,210.$ Other information follows:

Outstanding cheques were #$321$ for $$653,$ #$371$ for $$238,$ #$375$ for $$281,$ and $$376$ for $$958.$ Cheque #$321$ was also outstanding on April $30$ and was included on April's bank reconciliation.

Included with the statement were EFT deposits totalling $$975$ during May in payment of accounts receivable. These deposits have not been recorded by the company.

Cheque #$370$ was correctly written and paid by the bank for $$488.$ The cheque has been issued to pay an account payable and the company had recorded it as $$408.$

The bank statement showed a cheque #$3723$ for $$600,$ which did not appear or company's books. Investigation revealed that the cheque was actually issued by South Hammion Pizzeria and was charged to South Hampton Pool Supplies' account in error.

The bank returned an NSF cheque from a customer for $$249.$

The bank statement showed two debit memoranda for service charges: one for $$17$ related the NSF cheque $($see item $[5]$ above$)$ and one for $$44$ for monthly bank charges. The company policy is to pass on all NSF processing fees to the customer.

The company's records showed the May $15$ deposit as $$2,850.$ On the bank statement it was co rectly recorded as $$2,580.$ The deposit was for cash sales.

The company has a pre$-$authorized EFT payment for its monthly utilities for $$2\mathrm{.}25$ scheduled $f$ the last day of each month. As May $31$ was a Saturday this year, the bank posted it on June $2.$ T company recorded it in May.

The $$1,370$ April $30$ bank deposit was recorded on May $1$ on the bank statement. The May bank deposit of $$2,930$ was not included on the May bank statement.

Instructions

a$.$ Prepare a bank reconciliation.

b$.$ Prepare any necessary journal entries.

c$.$ What amount should be reported as cash on the May $31$ balance sheet?