Pharoah Inc.'s bank statement from Western Bank at August 31,2022 , shows the following information. A summary of the Cash account in the ledger for August shows the following: Reconciled cash balance, August 1 , $18,928; cash receipts deposited $86,240; cheque disbursements $82,392; and unreconciled cash balance, August 31 , $22,776. Analysis reveals that the only reconciling items on the July 31 bank reconciliation were a deposit in transit for $5,600 and outstanding cheques of $5,040. In addition, you determine that there was an error involving a company cheque drawn in August: A cheque for $400 payable to a supplier on account that cleared the bank in August was journalized and posted for $40. (a) Calculate deposits in transit at August 31. Deposits in transit $ Attempts: 1 of 15 used (b) Calculate the amount of outstanding cheques at August 31. (Hint: You need to correct disbursements for any cheque error.) Outstanding cheques $ Prepare the adjusting journal entry required, if any, to record the lower of cost and net realizable value of the inventory assuming Martinez Furniture Shop uses a perpetual inventory system. (List all debit entries before credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)