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In preparing your bank reconciliation, you notice that you recorded a deposit as $100 instead of $10. You should ______.Multiple choice question.subtract $90 from your cash and do not make an entryadd $90 to your cash and make an entrysubtract $90 from your cash and make an entryadd $90 to your cash and do not make an entryadd $10 to you cash and do not make an entry

Question

In preparing your bank reconciliation, you notice that you recorded a deposit as 100insteadof100 instead of 10. You should ______.Multiple choice question.subtract 90fromyourcashanddonotmakeanentryadd90 from your cash and do not make an entryadd 90 to your cash and make an entrysubtract 90fromyourcashandmakeanentryadd90 from your cash and make an entryadd 90 to your cash and do not make an entryadd $10 to you cash and do not make an entry

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Solution

You should subtract 90fromyourcashandmakeanentry.Thisisbecauseyouhaveoverestimatedyourcashby90 from your cash and make an entry. This is because you have overestimated your cash by 90 when you recorded the deposit as 100insteadoftheactual100 instead of the actual 10. Therefore, you need to correct this by subtracting the overestimated amount. Also, you need to make an entry to reflect this correction in your records.

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