If a Check Correctly Written and Paid by the Bank

question 35

Multiple Choice

If a check correctly written and paid by the bank for $272 is incorrectly recorded in the company's books for $227, how should this error be treated on the bank reconciliation?

• A) Subtract $45 from the bank's balance and add $45 to the book's balance.
• B) Subtract $45 from the bank's balance.
• C) Add $45 to the book balance.
• D) Subtract $45 from the book balance.
• E) Add $45 to the bank's balance.