The Fitzgerald Company maintains a checking account at the Bank of the North. The bank provides a bank statement along with canceled checks on the last day of each month. The October 31, 2016, bank statement included the following information:

Balance, October 1, 2016	$	32,790
Deposits		91,000
Checks processed		(80,200)
Service charges		(450)
NSF checks		(1,700)
Monthly loan payment deducted
directly by bank from account
(includes $500 in interest)		(4,500)
Balance, October 31, 2016	$	36,940

The companys general ledger cash (checking) account had a balance of $42,734 at the end of October. Deposits outstanding totaled $4,324, and all checks written by the company were processed by the bank except for those totaling $5,720. In addition, a check for $600 for the purchase of office furniture was incorrectly recorded by the company as a $60 disbursement. The bank correctly processed the check during October.

Prepare the necessary journal entries at the end of October to adjust the general ledger cash account.

Record the correction of error in cash disbursement.

Record the credits to cash revealed by the bank reconciliation.