Wildhorse Company is a very profitable small business. It has not, however, given much consideration to internal control. For example, in an attempt to keep clerical and office expenses to a minimum, the company has combined the jobs of cashier and bookkeeper. As a result, Bret Turrin handles all cash receipts, keeps the accounting records, and prepares the monthly bank reconciliations. The balance per the bank statement on October 31, 2022, was $18,365.00. Outstanding checks were No. 62 for $155.00, No. 183 for $172.00, No. 284 for $270.00. No. 862 for $225.00, No. 863 for $255.00, and No. 864 for $180.00. Included with the statement was a credit memorandum of $185.00 Indicating the collection of a note receivable for Wildhorse Company by the bank on October 25. This memorandum has not been recorded by Wildhorse. The company's ledger showed one Cash account with a balance of $21.982.00. The balance included undeposited cash on hand. Because of the lack of internal controls, Bret took for personal use all of the undeposited receipts in excess of $3,992.00. He then prepared the following bank reconciliation in an effort to conceal his theft of cash. Cash balance per books, October 31 Add: Outstanding checks $21.982.00 No. 862 $225.00 No. 863 255.00 No. 864 180.00 560.00 22.542.00 Less: Undeposited receipts) 3,992.00 Unadjusted balance per bank, October 31 18,550.00 Less: Bank credit memorandum 185.00 Cash balance per bank statement October 31 $18.365.00