Franklin Company's bank reconciliation as of August 31 is shownbelow.

Bank balance	$14,237	Book balance	$13,162
+ Deposit in transit	4,500	Bank service fees	-50
- Outstanding checks	-3,900	Note collected	1,725
Adjusted book balance	$14,837		$14,837

The adjusting journal entries that Clayborn must record as a resultof the bank reconciliation include:

Debit Notes Receivable $1,725; credit Cash $1,725.

Debit Misc. Expense $3,900; credit Cash $3,900.

Debit Cash $50; credit Bank Service Fee Expense $50.

Debit Cash $1,725; credit Notes Receivable $1,725.

Debit Cash $4,500; credit Sales $4,500.

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