130. The May 31, 2016, balance per bank statement was $12,400. The cash balance per books was $17,000. Outstanding checks amounted to $1,700, and deposits in transit were $4,800. The bank statement...

130. The May 31, 2016, balance per bank statement was $12,400. The cash balance per books was $17,000. Outstanding checks amounted to $1,700, and deposits in transit were $4,800. The bank statement contained an NSF check for $1,100, a service charge for $50, and a debit memo for direct payment of the telephone bill of $350.
Required: a) Prepare a bank reconciliation to determine the true cash balance at May 31, 2016.
b) Prepare any necessary journal entries.