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Identify each of the following reconciling items as:

an addition to the cash balance according to the bank statement

a deduction from the cash balance according to the bank statement

an addition to the cash balance according to the company's records

a deduction from the cash balance according to the company's records

$($None of the transactions reported by bank debit and credit memos have been recorded by the company.$)$

ItemTreatment$1.$ Bank service charges, $$50.$

Addition to the balance per bankAddition to the balance per company's recordsDeduction from the balance per bankDeduction from the balance per company's records

$2.$ Check of a customer returned by bank to company because of insufficient funds, $$520.$

Addition to the balance per bankAddition to the balance per company's recordsDeduction from the balance per bankDeduction from the balance per company's records

$3.$ Check for $$345$ incorrectly recorded by the company as $$435.$

Addition to the balance per bankAddition to the balance per company's recordsDeduction from the balance per bankDeduction from the balance per company's records

$4.$ Check for $$200$ incorrectly charged by bank as $$2,000.$

Addition to the balance per bankAddition to the balance per company's recordsDeduction from the balance per bankDeduction from the balance per company's records

$5.$ Deposit in transit, $$4,250.$

Addition to the balance per bankAddition to the balance per company's recordsDeduction from the balance per bankDeduction from the balance per company's records

$6.$ Outstanding checks, $$5,420.$

Addition to the balance per bankAddition to the balance per company's recordsDeduction from the balance per bankDeduction from the balance per company's records

$7.$ Note collected by bank, $$5,300.$

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