Identify each of the following reconciling items as:an addition to the cash balance according to the bank statementa deduction from the cash balance according to the bank statementan addition to the cash balance according to the company's recordsa deduction from the cash balance according to the company's records(None of the transactions reported by bank debit and credit memos have been recorded by the company.)Item Treatment1. Bank service charges, $75. 2. Check of a customer returned by bank to company because of insufficient funds, $880. 3. Check for $275 incorrectly recorded by the company as $725. 4. Check for $100 incorrectly charged by bank as $1,000. 5. Deposit in transit, $5,550. 6. Outstanding checks, $10,350. 7. Note collected by bank, $12,720.PART IIEntries Based on Bank ReconciliationWhich of the reconciling items listed below require an entry in the company's accounts? (None of the transactions reported by bank debit and credit memos have been recorded by the company.)Item Entry Required1. Bank service charges. 2. NSF check returned to company by the bank. 3. Check incorrectly recorded by company. 4. Check incorrectly charged by bank. 5. Deposit in transit. 6. Outstanding checks.