Hussain Company is unable to reconcile the bank balance at January 31. Hussain's reconciliation is as follows. Cash balance per bank Add: NSF check $5,300 1,490 Less: Bank service charge Adjusted balance per bank 25 $6,765 Cash balance per books Less: Deposits in transit Add: Outstanding checks Adjusted balance per books $5,905 950 1,860 $6,815 Instructions (a) (b) Prepare a correct bank reconciliation Journalize the entries required by the reconciliation

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Balance of Payments

BOP is categorized into the following three components: