1. On September 30, 2005, Dart Co.'s bank statement showed a balance of $8,510, and the checkbook showed a balance of $7,540. When preparing the bank reconciliation it was determined that Dart Co. had made an error in recording a deposit. The actual amount of the deposit should have been $910. However, Dart Co. recorded it in the checkbook as a deposit of $190.Which of the following statement correctly details what should be done with the $720 to correct Dart Co.'s error when preparing the reconciliation?

   		Add $720 to correct Dart Co.'s error to the bank statement balance
   		Deduct $720 to correct Dart Co.'s error from the bank statement balance
   		Add $720 to correct Dart Co.'s error to the checkbook balance
   		Deduct $720 to correct Dart Co.'s error to the checkbook balance