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. $$\begin{array} { | l | r | l | r | } \hline \text { Bank balance } & \$ 37,643 & \text { Book balance } & \$ 38,153 \\\hline \text { + Deposit in transit } & 2,950 & \text { Note collection } & + 745 \\\hline \text { - Outstanding checks } & - 1,730 & \text { Check printing } & - 3 5 \\\hline \text { Adjusted bank balance } & \$ 38,863 & \text { Adjusted book balance } & \$ 38,863 \\\hline\end{array}$$ 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.