Question 4 incomplete answer Marked out of 1.00 P Flag question Bank Reconciliation On May 31, the Cash in Bank account of Wallace Company, a sole proprietership, had a balance of $6,122.50 On that date, the bank statement indicated a balance of $7,933.50. A comparison of returned checks and bank advices revealed the following: 1. Deposits in transit May 31 totaled $2,709.05 2. Outstanding checks May 31 totaled $3,088.25 3. The bank added to the account $27.80 of interest income earned by Wallace during May. 4. The bank collected a $2,400 note receivable for Wallace and charged a 520 collection fee. Both items appear on the bank statement. 5. Bank service charges in addition to the collection fee, not yet recorded were $20.00 6. Included with the returned checks is a memo indicating that L. Ryder's check for $686.00 had been returned NSF. Ryder, a customer, had sent the check to pay an account of $700.00 less a discount of 2% 7. Wallace Company incorrectly recorded the payment of an account payable as $690.00 the check was for $960.00. Required a. Prepare a bank reconciliation for Wallace Company at May 31 b. Prepare the journal entry for entries) necessary to bring the Cash in Bank account into agreement with the reconciled cash balance on the bank reconciliation Note: Do not round answers.enter using two decimal places, when needed. Bank reconciliation Journal entries $ $ 6,1225 Ending balance from bank statement Add: Deposits not credited by bank 27.8 X 2.400 X 0 X WALLACE COMPANY Bank Reconciliation May 31 7,9335 Balance from general ledger 2,709.5 x Add: Reconciled cash balance Less: Collection Fee Add: Interest Income 10,643 x Subtotal 3,088.25 Less: Collection of note Less: NSF Check Less: Check record 3.6947 X Subtotal Less: Outstanding checks 20 686 20 X * 270 $ Ending balance from bank statement 7,554.75 x Deposits not credited by bank $ * 7554 X Debit Credit 0 2.400 60