On Jan $20,2022,$ a company received a check $(3469)$ for $$500.$ Company deposited it in

the bank account and provided its effect in the company books. However, while

providing entry in books, it recorded it as $$540$ expense paid in cash. What adjustment is

needed for the cash balance as per company's book?

$$540$ decrease.

$$1040$ increase.

$$500$ increase.

$$540$ increase.