If a Company Erroneously Records a $50 Check Received from a Customer

Multiple Choice

If a company erroneously records a $50 check received from a customer as $500 in its records, which of the following must occur when reconciling its bank statement?

A) The company must increase the balance per its records by $500.
B) The company must increase the balance per its records by $450.
C) The company must decrease the balance per its records by $500.
D) The company must decrease the balance per its records by $450.