Flip Company purchases 100% of the supplies on account from vendor, Flop Company. Flip owes Flop $1,653 for recent purchases. The accounting clerk at Flip prepares a check for Flop and mails it, recording the check as follows in the accounting records:

Accounts Payable - Flop (dr) $1,653

Cash (cr) $1,653

The bank paid the vendor $1,635 (which due to a transposition error is the amount the check was drawn for). Flip should include a reconciling item on the book side of the reconciliation report and in the company's journal entry for said item Flip will debit cash.

True

False