On its bank reconciliation, how
Financial And Managerial Accounting
15th Edition
ISBN:9781337902663
Author:WARREN, Carl S.
Publisher:WARREN, Carl S.
Chapter7: Internal Control And Cash
Section: Chapter Questions
Problem 22E
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Question
While performing its monthly bank reconciliation, XYZ Inc. discovered that it recorded a cash receipt from a customer for an incorrect amount. The company debited “Cash” and credited “Sales Revenue” for $920 instead of $290.
On its bank reconciliation, how should the company adjust for this error?
- Add $630 to the company (book) side.
- Subtract $630 from the company (book) side.
- Add $630 to the bank side.
- Subtract $630 from the bank side.
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