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 10. You should ______.Multiple choice question.subtract 90 to your cash and make an entrysubtract 90 to your cash and do not make an entryadd $10 to you cash and do not make an entry
Solution
You should subtract 90 when you recorded the deposit as 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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