Great Falls Co One of the Adjusting Journal Entries That Great Falls Must

Great Falls Co.'s bank reconciliation as of February 28 is shown below. $\begin{array}{|l|r|l|r|}\hline \text { Bank balance } & \$ 37,643 & \text { Book balance } & \$ 38,153 \\\hline+ \text { Deposit in transit } & 2,950 & \text { Note collection } & +745 \\\hline \text { - Outstanding checks } & \underline{-1,730} & \text { Check printing } & \underline{-35} \\\hline \text { Adjusted bank balance } & \underline{\$ 38,863} & \text { Adjusted book balance } & \$ 38,863 \\\hline\end{array}$ One of the adjusting journal entries that Great Falls must record as a result of the bank reconciliation includes:

A) Debit Miscellaneous Expense $35; credit Accounts Payable $35.
B) Debit Note Payable $745; credit Cash $745.
C) Debit Cash $2,950; credit Accounts Receivable $2,950.
D) Debit Cash $2,950; credit Sales $2,950.
E) Debit Cash $745; credit Note Receivable $745.