Question: The May 31, 2016, balance per bank statement for Upton Company was $7,200. The cash balance per books was $9,500. The following information is also available:
- Outstanding checks amounted to $800
- Deposits in transit were $2,400
- NSF check from customer for $500
- Service charge for $25
- Debit memo for direct payment of the telephone bill of $175?
Required: Prepare a bank reconciliation to determine the true cash balance at May 31, 2016.