Problem 4 (10 points) The cash balance per books for Potter Company on September 30, 2020 is $10,740.93. The following checks and receipts were recorded for the month of October, 2020 Checks No. Amount No. Amount Amount Date 27 $372.96 32 5 578.84 $843.86 10/ 5 28 $770.62 33 $1,786.50 $941.54 10/21 29 $257.00 34 $921.30 S880.58 10/27 30 $578.50 35 $ 246.03 $976.00 10/30 31 $234.15 In addition, the bank statement for the month of October is presented below. Balance Deposits and Credits Checks and Debits Balance Last Statement No. Total Amount No T otal Amount This Statement $5,404.84 5 $9,350.36 10 $3,676.19 $11,129.01 Checks and other debits Deposits Date Balance No. Amount No. AmountNo. Amount 32 578.84 24 28 29 31 5,484.38 843.86 27 34 35 148.29 707.62 257.00 234.15 140.00 NSF 372.96 921.30 246.03 20.00 SC 10/ 1 10/ 8 941.54 10/23 $9,875.31 $9,219.03 $9,541.58 $10,101.01 $10,951.01 880.58 1,200.00 CM 10/29 10/31 Symbols: NSF (Not sufficient funds) SC (Service charge) CM (Credit Memo) Check No. 28 was correctly written for $707.62 for a payment on account. The NSF check was from M. Short, a customer. In settlement of an accounts receivable. An entry had not been made for the NSF check. The credit memo is for the collection of a note receivable including interest of $80 which has not been accrued. The bank service charge is $25.00 Instructions (a) Prepare a bank reconciliation at October 31. (b) Prepare the journal entries required by the bank reconciliation. Omit explanations. 28 707.62 25.00156