If a check correctly written and paid by the bank for $584 is incorrectly recorded on the company's books for $548, the appropriate treatment on the bank reconciliation would be to
A) deduct $36 from the book's balance.
B) add $36 to the book's balance.
C) deduct $36 from the bank's balance.
D) deduct $584 from the book's balance.

Question

Quizplus · Accepted Answer

Since the company recorded the check for $548 instead of the correct amount of $584, this means that the company incorrectly deducted $36 from its book balance. Therefore, on the bank reconciliation, the appropriate treatment would be to deduct $36 from the book's balance to adjust for this error.

If a Check Correctly Written and Paid by the Bank