Malory Company provides the following information about the month-end bank reconciliation: Ending cash per bank statement 1,367 Ending cash per company records7,383 Monthly bank service charge 25 Deposits in transit at month-end8,345 Outstanding checks at month-end 2,399 Customer check returned NSF45. What journal entry should be recorded to cause the company records to be correct?
1) Miscellaneous Expense $70, Cash $70
2) Miscellaneous Expense $25, Accounts Receivable $45, Cash $70
3) Cash $70, Cash Short & Over $70
4) Miscellaneous Expense $2,399, Cash $2,399