The following items appear on a bank reconciliation.
Classify each item as
(a) An addition to the bank balance,
(b) A subtraction from the bank balance,
(c) An addition to the book balance,
(d) A subtraction from the book balance.
1. ___ Outstanding checks
2. ___ Bank error: The bank credited our account for a deposit made by another bank customer.
3. ___ Service charge
4. ___ Deposits in transit
5. ___ NSF check
6. ___ Bank collection of a note receivable on our behalf
7. ___ Book error: We debited Cash for $300. The correct debit was $3,000.