Bank reconciliation--computation and journal entry
The Cash account in the ledger of Arnaz Company showed a balance of $13,307 at March 31. The bank statement, however, showed a balance of $9,936 at the same date. The only reconciling items consisted of a $4,902 deposit in transit, a bank service charge of $36, outstanding checks totaling $2,600, and an NSF check from L.Ball, one of Arnaz' customers.
(a) What is the amount of the adjusted cash balance on March 31?
(b) What is the amount of the NSF check?
(c) Give the journal entry necessary, if any, to adjust Arnaz Company's accounting records at March 31:
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