While Preparing the Bank Reconciliation Terry Discovered That the Bank

Multiple Choice

While preparing the bank reconciliation Terry discovered that the bank had incorrectly paid cheque number 100389 for $900 more than the amount written on the cheque by the company. The bank account has a positive balance. The proper procedure to correct this bank error is to:

A) add the error to the bank balance in the general ledger.
B) deduct the error from the bank statement balance in the reconciliation.
C) add the error to the bank statement balance in the reconciliation and notify the bank.
D) deduct the error from the bank balance in the general ledger and notify the bank.