12. On June 30, 2018, when an accountant for Harris Co., was preparing the bank reconciliation, he/she

found that the company had outstanding checks in the amount of $1,850 and deposits in transit of

$2,000. Regarding these two items the accountant then took the following action:

A. Made the following entry:

Cash 2,000

Revenue 2,000

Operating Expense 1,850

Outstanding Checks 1,850

B. Made the following entry:

Cash 150

Cash short and Over 150

C. Made the following entry.

Cash 2,000

Bank Balance 2,000

Operating Expense 1,850

Cash 1,850

D. The accountant did not make any entry as both items are adjustment to the Bank balance only.