The Bank Statement for Farmer Co $\$ 742$ Had Been Erroneously Recorded in the Cash Receipts Journal As $7,735.00

Essay

The bank statement for Farmer Co. indicates a balance of $7,735.00 on June 30. After the journal entries for June had been posted, the cash account had a balance of $4,098.00. Prepare a bank reconciliation on the basis of the following reconciling items:
​ (a) Cash sales of $\$ 742$ had been erroneously recorded in the cash receipts journal as $\$ 724$ .
(b) Deposits in transit not recorded by bank, $\$ 425$ .
(c) Bank debit memo for service charges, $\$ 35$ .
(d) Bank credit memo for note collected by bank, $\$ 2,475$ including $\$ 75$ interest.
(e) Bank debit memo for $\$ 256 \mathrm { NSF }$ (not sufficient funds) check from Janice Smith, a customer.
(f) Checks outstanding, $\$ 1,860$ .