In comparing the canceled checks on the bank statement with the entries in the accounting records, O'Brien Company found that check number 4239 for May's rent was correctly written and drawn for $9,855 but was erroneously entered in the accounting records as $9,585.
When preparing the May bank reconciliation, the O'Brien Company should:

Question

Quizplus · Accepted Answer

In order to reconcile to the bank statement, the $270 error ($9,855 - $9,585) in recording check #4239 in the general ledger must be subtracted from the general ledger cash account balance, since $270 more was deducted from the bank account balance, than was deducted in the general ledger.

In Comparing the Canceled Checks on the Bank Statement with the Entries