You are doing a bank reconciliation for May, 20X1. You have a $2,785 unadjusted ledger cash balance and the following data:

* Outstanding checks:No 719, $200; No 727, $800; No 732, $625

* Deposit in transit, $1,200

* Check No 742 written for $505 but incorrectly recorded as $550

* NSF check from a customer, $500

*Bank service charge for May, $5

*Balance per bank statement, $2,750

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What dollar amount should be deducted from the balance per bank statement?

What dollar amount should be deducted from the balance per book?

Which adjustment will you need to make to company books?

a. a net decrease in Cash of $550

b. a net decrease in Cash of $505

c. a net decrease in Cash of $460

d. a net increase in Cash of $45