If a Bank Reconciliation Included Deposits in Transit Amounting to $3,700

Multiple Choice

If a bank reconciliation included deposits in transit amounting to $3,700, the journal entry to record this reconciling item should:

A) debit Deposit in Transit and credit Cash for $3,700.
B) debit Accounts Receivable and credit Cash for $3,700.
C) debit Cash and credit Deposit in Transit for $3,700.
D) No entry is required.