The May 31, 2016, balance per bank statement for Upton Company was $7,200. The cash balance per books was $9,500. The following information is also available:

* Outstanding checks amounted to $800

* Deposits in transit were $2,400

* NSF check from customer for $500

* Service charge for $25

* Debit memo for direct payment of the telephone bill of $175

* Required: Prepare a bank reconciliation to determine the true cash balance at May 31, 2016.