On October $31,2024,$ Gibson Company's general ledger shows a cash account balance of $$8,439.$ The company's cash receipts for

the month total $$74,600,$ of which $$71,365$ has been deposited in the bank. In addition, the company has written checks for $$72,509,$

of which $$71,234$ has been processed by the bank.

The bank statement reveals an ending balance of $$12,749$ and includes the following items not yet recorded by Gibson: bank service

fees of $$290,$ note receivable collected by the bank of $$6,400,$ and interest earned on the note of $$1,020.$ After closer inspection,

Gibson realizes that the bank incorrectly charged the company's account $$860$ for an automatic withdrawal that should have been

charged to another customer's account. The bank agrees to the error.

Required:

Prepare a bank reconciliation to calculate the correct ending balance of cash on October $31,2024.$

Record the necessary entries to adjust the balance for cash.

Complete this question by entering your answers in the tabs below.

Record the necessary entries to adjust the balance for cash. $($If no entry is required for a transaction$/$event$,$ select $"$No Journal Entry

Required" in the first account field.$)$

Journal entry worksheet

$2$

Record the amounts that increase cash.