Clayborn Company’s bank reconciliation as of May 31 is shown below.
|Bank balance||$15,800||Book balance||$17,025|
|+ Deposit in transit||5,200||Bank service fees||-25|
|- Outstanding checks||-4,600||NSF returned||-600|
|Adjusted book balance||$16,400||$16,400|
The adjusting journal entries that Clayborn must record as a result of the bank reconciliation include:
- A debit to Cash of $625;
- A debit to Cash of $5,200;
- A credit to Cash of $4,600;
- A credit to Cash of $600; or
- A debit to cash of $25?