If a Company Erroneously Records a $50 Check Received from a Customer

question 57

Multiple Choice

If a company erroneously records a $50 check received from a customer as $500 in its records, which of the following must occur when reconciling its bank statement?

• A)The company must increase the balance per its records by $500.
• B)The company must increase the balance per its records by $450.
• C)The company must decrease the balance per its records by $500.
• D)The company must decrease the balance per its records by $450.

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