The Eric Manufacturing Company received its bank statement for the month ending May 31. The bank statement indicates a balance of $32,400. The cash account as of the close of business on M31 has a balance of $8,350. In reconciling the balances, the following items are discovered.
(a) Collection by bank of note for $1,500 less collection fees of $250.
(b) Deposits in transit, $51,000.
(c) The bank charged the depositor $800 for overdrafts.
(d) Checks outstanding on May 31, $79,100.
(e) A canceled check issued to Scott Corp. for $4,500 was not recorded on Eric Company's books.
Prepare a bank reconciliation statement. (Use the format of reconciling bank and depositor figures to corrected cash balance.)
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