The following information is available to assist you in preparing a bank reconciliation for Karen's Catering on March 31 : a. The balance on the March 31 bank statement is $6,506.10. b. Not included on the bank statement is a $423 deposit made by Karen's late on March 31. c. A comparison between the canceled checks listed on the bank statement and the company records indicated that the following checks are outstanding at March 31 : d. The bank acts as a collection agency for checks returned for insufficient funds. The March bank statement indicates that one such check in the amount of $45.00 was collected and deposited and a collection fee of $4.50 was charged. e. Interest earned on the checking account and added to Karen's account during March was $4.30. Miscellaneous bank service charges amounted to $22. f. A comparison between the deposits listed on the bank statement and the company's books revealed that a customer's check in the amount of $1,250 appears on the bank statement in March but was never added to the customer's account on the company's books. g. The comparison of checks cleared per the bank statement with those per the books revealed that the wrong amount was charged to the company's account for a check. The amount of the check was $990. The proof machine encoded the check in the amount of $909, the amount charged against the company's account. 2. What should Karen do as a result of the bank error and why? a. It is illegal for her to not tell the bank about the error and she could face jail time and penalties