The bank statement for Jeffrey Co. indicates a balance of $8,785 on October 31. After the journal entries for October were posted, the cash account had a balance of $8,998. The reconciliation process revealed the following: Cash sales of $945 were erroneously recorded in the journal as $495. Deposits in transit not recorded by the bank were $778. The bank enclosed a debit memo for service charges of $40. The bank enclosed a credit memo for a note collected on Jeffrey Co.’s behalf of $23,985 plus $885 interest. The bank returned a $756 check from Calin Sams, a customer, marked "NSF." Checks outstanding totaled $1,860. Journalize any necessary entries based on the bank reconciliation. If an amount box does not require an entry, leave it blank.