If a check correctly written and paid by the bank for $584 is incorrectly recorded on the company's books for $548, the appropriate treatment on the bank reconciliation would be to

Question

Quizplus · Accepted Answer

Since the company's books recorded the check for $36 less than the amount paid by the bank, the book balance is overstated by $36. Therefore, to correct the company's records, $36 should be deducted from the book balance on the bank reconciliation.

If a Check Correctly Written and Paid by the Bank