During Its Year-End Bank Reconciliation, Red River Company Finds That

Multiple Choice

During its year-end bank reconciliation, Red River Company finds that Check No. 951 was written for $49.70 on the books, but the check was written and cleared the bank for the correct amount, $94.70.
The correct treatment on the bank reconciliation would be:

A) On the bank side, deduct $45 from payments and add $45 to ending balance
B) On the book side, deduct $45 from payments and add $45 to ending balance
C) On the book side, add $45 to payments and deduct $45 from ending balance
D) On the bank side, add $45 to receipts and add $45 to ending balance