On September 30, 2005, Dart Co.'s bank statement showed a balance of $9,510, and the checkbook showed a balance of $8,540. When preparing the bank reconciliation it was determined that a credit memorandum for $580 that represented a note receivable that was collected by the bank for Dart Co. had not been recorded on Dart's Co.'s books. Which of the following statement correctly details what should be done with this credit memorandum when preparing the reconciliation?

Answers:

A. Add $580 for the note collected by the bank to the bank statement balance

B. Deduct the $580 for the note collected by the bank from the bank statement balance

C. Add the $580 for the note collected by the bank to the checkbook balance

D. Deduct the $580 for the note collected by the bank from the checkbook balance