The bank statement for Fashion Fly had an ending cash balance of $1,500 on December 31, 2018. On this date the cash balance in their general ledger was $2,000. After comparing the bank statement with the company records, the following information was determined.

• The bank returned an NSF check in the amount of $320 that Fashion Fly deposited on December 20. The NSF service fee was $5.
• A direct deposit was received from a customer on December 30 in payment of their accounts totaling $3,850. This has not yet been recorded by the company.
• On December 30 the bank deposited $10 for interest earned.
• The bank withdrew $15 for bank service charges.
• Deposits in transit on December 31 totaled $4,020.

1. Reconcile the ledger and bank statement.

2. Prepare the required journal entries

Date	Account Title and Explanation	Debit	Credit