The following information is available for ACCT 201 Co. for June 30, 2021:

The bank statement balance is $7,000. The General Ledger cash account balance is $5,322

Outstanding checks totaled $1,500. Deposits in transit are $500.

The bank service charge is $22. Note Collection by bank, $650 plus $50 interest income.

One of the adjusting journal entries needed for the bank reconciliation in above model^

A. Outstanding Checks $1,500; Cr. Bank Statement $1,500

B. Cash $500; Cr. Fees Earned $500

C. Notes Receivable $700; Cr. Cash $700

D. Miscellaneous Expense $22; Cash $22

E. None of the above.