If a check correctly written and paid by the bank for $628 is incorrectly recorded on the company's books for $682, the appropriate treatment on the bank reconciliation would be to
A)add $54 to the book's balance.
B)subtract $54 from the book's balance.
C)deduct $54 from the bank's balance.
D)deduct $628 from the book's balance.

Question

Quizplus · Accepted Answer

The company recorded $682 instead of $628, an overstatement of $54. To correct this, $54 should be added back to the book's balance.

If a Check Correctly Written and Paid by the Bank