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In performing a month-end bank reconciliation, Garrick Co.'s accountant determined that a note receivable of \$500 plus interest of \$10 had been collected by Banton Bank as indicated by a credit memo of \$510 in its monthly bank statement.

How would the accountant need to adjust for this reconciling item in the bank reconciliation?


Add the \$510 to Banton Bank's cash balance.


Deduct the \$510 from Banton Bank's cash balance.


Add the \$510 to Garrick Co.'s cash balance.


Deduct the \$510 from Garrick Co.'s cash balance.

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