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Financial Accounting

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Moderate

Bank Reconciliation Correct Check Amount

FINACT-PIAOIW

A check was properly written for \$560 and cleared the bank account for that amount. However, the check was recorded in the company's books for $650 in error.

What is the appropriate treatment on the bank reconciliation for this item?

A

Add \$90 to the book balance.

B

Add \$90 to the bank balance.

C

Subtract \$90 from the book balance.

D

Subtract \$90 from the book balance.