While preparing the bank reconciliation for March, the accountant for Bertran Industries discovered that a $649 check in payment of an account payable had been entered incorrectly in the journal as $694. Which of the following is true? Multiple Choice An adjusting entry must be made to debit Cash and credit Accounts Payable for $45. An adjusting entry must be made to debit Accounts Payable and credit Cash for $45. The bank should be notified, and the bank should correct its records by adding $45 to the company's account. No entry is needed for the reconciling item because it appears on the bank's side of the reconciliation.
While preparing the bank reconciliation for March, the accountant for Bertran Industries discovered that a $649 check in payment of an account payable had been entered incorrectly in the journal as $694. Which of the following is true? Multiple Choice An adjusting entry must be made to debit Cash and credit Accounts Payable for $45. An adjusting entry must be made to debit Accounts Payable and credit Cash for $45. The bank should be notified, and the bank should correct its records by adding $45 to the company's account. No entry is needed for the reconciling item because it appears on the bank's side of the reconciliation.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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5
While preparing the bank reconciliation for March, the accountant for Bertran Industries discovered that a $649 check in payment of an account payable had been entered incorrectly in the journal as $694. Which of the following is true?
Multiple Choice
-
An
adjusting entry must be made to debit Cash and credit Accounts Payable for $45. -
An adjusting entry must be made to debit Accounts Payable and credit Cash for $45.
-
The bank should be notified, and the bank should correct its records by adding $45 to the company's account.
-
No entry is needed for the reconciling item because it appears on the bank's side of the reconciliation.
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