If a check correctly written and paid by the bank for $517 is incorrectly recorded on the company's books for $571, the appropriate treatment on the bank reconciliation would be to
A) add $54 to the bank's balance.
B) add $54 to the book's balance.
C) deduct $54 from the bank's balance.
D) deduct $517 from the book's balance.

Question

Quizplus · Accepted Answer

The company recorded the check as $571 instead of $517, an overstatement of $54. To correct this, $54 should be added to the book's balance.

If a Check Correctly Written and Paid by the Bank