Where do the outstanding checks appear in the bank reconciliation?

a) Add to ledger balance

b) Subtract from ledger balance

c) Add to bank balance

d) Subtract from bank balance

At November 30, the balance of the Cash account according to the records of Blue Company was $7,261. The November 30 bank statement showed a balance of $8,798. Prepare the bank reconciliation of Blue Company at November 30, using the following supplementary information: (a.) Deposit in transit at November 30, $6,772. (b.) Outstanding checks: #120, $140; #121, $932; #127, $307; #134, $2,200. (c.) Service charge by bank, $50. (d.) A note receivable for $5,050 was collected and credited to company's account. No interest involved. (e.) A check for $90 drawn by a customer, ABC, but deducted from Blue's account by the bank and returned with the notation "NSF." (f.) Blue's check no. 133, issued in payment of $970 worth of office equipment, correctly written in the amount of $970 but erroneously recorded in Blue's accounting records as $790