During the month of July, Clanton Industries issued a check in the amount of $867 to a supplier on account. The check did not clear the bank during July. In preparing the July 31 bank reconciliation, the company should:

Multiple Choice

• Deduct the check amount from the book balance of cash.

• Add the check amount to the book balance of cash.

• Deduct the check amount from the bank balance.

• Add the check amount to the bank balance.