A canceled check for $1,900 was erroneously recorded by the bank as $9,100.How is the error adjusted in a bank reconciliation?
A) The amount is deducted from the cash balance in the bank section of the reconciliation.
B) The amount is deducted from the cash balance in the company section of the reconciliation.
C) The amount is added to the cash balance in the bank section of the reconciliation.
D) The amount is added to the cash balance in the company section of the reconciliation.

Question

Quizplus · Accepted Answer

The bank recorded the check as $9,100 instead of $1,900, overstating the deduction by $7,200. To correct this, $7,200 should be added back to the bank's cash balance in the reconciliation.

A Canceled Check for $1,900 Was Erroneously Recorded by the Bank