Diamond Corp. prepares monthly bank reconciliations of its checking account balance. The bank statement for October 2013 indicated the following:
An analysis of canceled checks and deposits and the records of Diamond revealed the following items:
The correct amount of check # 627 is $980, but it was recorded as a cash disbursement of $890. The check was issued to pay for merchandise purchased. The check was written correctly and appeared on the bank statement correctly.

Question

Diamond Corp. prepares monthly bank reconciliations of its checking account balance. The bank statement for October 2013 indicated the following:
  An analysis of canceled checks and deposits and the records of Diamond revealed the following items:
  The correct amount of check # 627 is $980, but it was recorded as a cash disbursement of $890. The check was issued to pay for merchandise purchased. The check was written correctly and appeared on the bank statement correctly.

Quizplus · Accepted Answer

The Answer of Diamond Corp. prepares monthly bank reconciliations of its checking account balance. The bank statement for October 2013 indicated the following:
  An analysis of canceled checks and deposits and the records of Diamond revealed the following items:
  The correct amount of check # 627 is $980, but it was recorded as a cash disbursement of $890. The check was issued to pay for merchandise purchased. The check was written correctly and appeared on the bank statement correctly.