A check drawn by a company for $340 in payment of a liability was recorded in the journal as $430. This item would be included on the bank reconciliation as a (n)
A) addition to the balance per the company's records
B) addition to the balance per the bank statement
C) deduction from the balance per the bank statement
D) deduction from the balance per the company's records

Question

Quizplus · Accepted Answer

The error resulted in an overstatement of the company's records by $90. To correct this, $90 should be added to the balance per the company's records.

A Check Drawn by a Company for $340 in Payment