Kathryn's Account Is Not in Overdraft

Multiple Choice

Kathryn's account is not in overdraft.When preparing the bank reconciliation she found that the bank had incorrectly debited her account with $120.The proper procedure is to:

A) Deduct $120 from the bank balance in the general ledger and notify the bank
B) Deduct $120 from the bank balance in the general ledger
C) Add $120 to the bank statement balance in the bank reconciliation and notify the bank
D) Do nothing as the bank will adjust the error when it balances.