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.