If a company recorded a check they wrote as $729 when it should have been recorded as being written for $279, which of the following must occur when reconciling its bank statement? A. Add $450 to the bank statement balance. B. Deduct $450 from the bank statement balance. C. Deduct $450 from the company’s records. D. Add $450 to the company’s records.

Solution: - Introduction: - Bank reconciliation means every company would match the cash balances on…

Answered: If a company recorded a check they…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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If a company recorded a check they wrote as $729 when it should have been recorded as being written for $279, which of the following must occur when reconciling its bank statement?

A. Add $450 to the bank statement balance.
B. Deduct $450 from the bank statement balance.
C. Deduct $450 from the company’s records.
D. Add $450 to the company’s records.

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