A 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 book balance was overstated by $198 due to the incorrect entry. To correct this, the book balance should be increased by $198 to reflect the actual check payment amount of $658.

A Check Payment for $658 Was Incorrectly Entered in the Cash