The Fitzgerald Company maintains a checking account at the Bank of the North. The bank provides a bank statement along with canceled checks on the last day of each month. The October 31, 2016, bank statement included the following information:Balance, October 1, 2016 $ 32,710 Deposits 87,000 Checks processed (76,200) Service charges (370) NSF checks (1,620) Monthly loan deducted directly by bank from account (includes $420 in interest) (3,620)Balance, October 31, 2016 $37,900The company's general ledger cash (checking) account had a balance of $42,582 at the end of October. Deposits outstanding totaled $4,244, and all checks written by the company were processed by the bank except for those totaling $5,640. In addition, a check for $520 for the purchase of office furniture was incorrectly recorded by the company as a $52 disbursement. The bank correctly processed the check during October. Required: 1. Prepare a bank reconciliation for the month of October.2. Record the correction of error in cash disbursement.3. Record the credits to cash revealed by the bank reconciliation.