In comparing the canceled checks on the bank statement with the entries in the accounting records, it is found that check number 4239 for November's rent was correctly written and drawn for $1,240 but was erroneously entered in the accounting records as $1,340. When reconciling the November bank statement, the company should:

Add $1,340 to the book balance of cash.

Add 100 to the book balance of cash.

Deduct $100 from the book balance of cash.

Deduct $100 from the bank statement balance.

Add $200 to the bank statement balance.