Franklin Company's Bank Reconciliation as of August 31 Is Shown

Multiple Choice

Franklin Company's bank reconciliation as of August 31 is shown below. The adjusting journal entries that Clayborn must record as a result of the bank reconciliation include:

A) Debit Cash $4,500; credit Sales $4,500.
B) Debit Cash $1,725; credit Notes Receivable $1,725.
C) Debit Cash $50; credit Bank Service Fee Expense $50.
D) Debit Misc.Expense $3,900; credit Cash $3,900.
E) Debit Notes Receivable $1,725; credit Cash $1,725.