E7-20 Classifying bank reconciliation items The following items could appear on a bank reconciliation: a. Outstanding checks, $670. b. Deposits in transit, $1,500. c. NSF check from customer, no. 548, for $175. d. Bank collection of note receivable of $800, and interest of $80. e. Interest earned on bank balance, $20. f. Service charge, $10. g. The business credited Cash for $200. The correct amount was $2,000. h. The bank incorrectly decreased the business's account by $350 for a check written by another business. Classify each item as (1) an addition to the book balance, (2) a subtraction from the book balance, (3) an addition to the bank balance, or (4) a subtraction from the bank balance.

E7-20 Classifying bank reconciliation items The following items could appear on a bank reconciliation: a. Outstanding checks, $670. b. Deposits in transit, $1,500. c. NSF check from customer, no, 548 , for $175. d. Bank collection of note receivable of $800, and interest of $80. e. Interest earned on bank balance, $20. f. Service charge, $10. g. The business credited Cash for $200. The correct amount was $2,000. h. The bank incorrectly decreased the business's account by $350 for a check written by another business. Classify each item as (1) an addition to the book balance, (2) a subtraction from the book balance, (3) an addition to the bank balance, or (4) a subtraction from the bank balance