Using the data in BE7.10, prepare the necessary journal entries required on July 31 for Southco.
In BE 7.10
An examination of the company's July bank statement shows a balance of $19,260 on July 31; outstanding cheques $3,630; deposits in transit $1,450; EFT collections on account that were not yet recorded on the books $2,170; NSF cheque $1,270; NSF fee $50; and bank services charges $90. Prepare the bank reconciliation at July 31.