Check payment for $658 was incorrectly entered in the cash account as $856.Which of the following adjustments needs to be made?
A)decrease the book balance
B)decrease the bank statement balance
C)increase the book balance
D)increase the bank statement balance

Question

Quizplus · Accepted Answer

The check was recorded for $856 instead of $658, meaning the book balance was reduced by $198 more than it should have been. To correct this, the book balance should be increased by $198.

Check Payment for $658 Was Incorrectly Entered in the Cash