The following data were gathered to use in reconciling the bank account of Reddan Company:
Balance per bank ............................. $18,250
Balance per company records ............... 12,045
Bank service charges ............................... 30
Deposit in transit ................................. 3,500
Note collected by bank with $160 interest ... 4,160
Outstanding checks............................... 5,575
a. What is the adjusted balance on the bank reconciliation?
b. Journalize any necessary entries for Reddan Company based on the bank reconciliation?