William's bank account is not in overdraft. When preparing the bank reconciliation he found that the bank had incorrectly credited his account with $50. The proper procedure is to:

Question

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The bank mistakenly added $50 to William's account, meaning that the bank statement balance is higher than the actual balance in the general ledger. Therefore, we need to deduct $50 from the bank statement balance to reconcile the difference. Additionally, notifying the bank of the error is important so that they can correct it in their records.

William's Bank Account Is Not in Overdraft