Vaughn Company assembled the following information in completing its March bank reconciliation: balance per bank $7780; outstanding checks $1680; deposits in transit $2410; NSF check $190; bank service charge $60; cash balance per books $8890. As a result of this reconciliation, Vaughn will

increase its cash account by $130.

reduce its cash account by $730.

reduce its cash account by $60.

reduce its cash account by $250.