If a company erroneously records a $50 check received from a customer as $500 in its records, which of the following must occur when reconciling its bank statement? Oa. The company must decrease the balance per its records by $450. Ob. The company must increase the balance per its records by $500. Oc. The company must increase the balance per its records by $450. Od. The company must decrease the balance per its records by $500.
If a company erroneously records a $50 check received from a customer as $500 in its records, which of the following must occur when reconciling its bank statement? Oa. The company must decrease the balance per its records by $450. Ob. The company must increase the balance per its records by $500. Oc. The company must increase the balance per its records by $450. Od. The company must decrease the balance per its records by $500.
Financial Accounting
15th Edition
ISBN:9781337272124
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Carl Warren, James M. Reeve, Jonathan Duchac
Chapter8: Internal Control And Cash
Section: Chapter Questions
Problem 21E
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![If a company erroneously records a $50 check received from a customer as $500 in its records, which of the following must occur when reconciling its
bank statement?
Oa. The company must decrease the balance per its records by $450.
Ob. The company must increase the balance per its records by $500.
Oc. The company must increase the balance per its records by $450.
Od. The company must decrease the balance per its records by $500.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F5b2605b0-3558-412b-948d-acf041b05ed3%2Fa5aac3ab-9504-4b19-b54d-8fabfbc30306%2Fnpg0lil_processed.jpeg&w=3840&q=75)
Transcribed Image Text:If a company erroneously records a $50 check received from a customer as $500 in its records, which of the following must occur when reconciling its
bank statement?
Oa. The company must decrease the balance per its records by $450.
Ob. The company must increase the balance per its records by $500.
Oc. The company must increase the balance per its records by $450.
Od. The company must decrease the balance per its records by $500.
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