While reconciling the checking account,an accountant with Sonic Corporation noticed that an error had been made in recording a check received by the company.Sonic recorded the receipt as $729,and the correct amount of the check was $279.Which of the following reconciling adjustments is required?
A)Add $450 to the company's book balance
B)Deduct $450 from the company's book balance
C)Add $450 to the bank statement balance
D)Deduct $450 from the bank statement balance

Question

Quizplus · Accepted Answer

Since the company recorded $450 more than the actual amount of the check, the company's book balance should be decreased by $450 to match the bank statement balance. Therefore, the correct reconciling adjustment is to deduct $450 from the company's book balance, which is option B.

While Reconciling the Checking Account,an Accountant with Sonic Corporation Noticed