In preparing to perform Royale, Inc.'s January bank reconciliation, its accountant determined that as of January 31, the company's cash balance was \$20,500 while the bank's balance was \$18,525. Further, the accountant gathered the following additional data:
|1||Deposit in transit||\$7,500|
|3||Bank service charges||75|
What is the adjusted cash balance on the bank reconciliation?