The records of Derma Corporation show the following bank statement information for December:

a. Bank balance, December 31, 2012, $87,450

b. Service charges for December, $50

c. Rent collected by bank, $1,000

d. Note receivable collected by bank (including $300 interest), $2,300

e. December check returned marked NSF (check was a payment of an account receivable), $200

f. Bank erroneously reduced Derma’s account for a check written by Dunna Company, $1,000

g. Cash account balance, December 31, 2012, $81,200

h. Outstanding checks, $9,200

i. Deposits in transit, $5,000

1. Prepare a bank reconciliation for December.

2. Prepare the entry to correct the cash account as of December 31, 2012.