QUESTION 6 A company has an overdraft of $500 in Account X with a bank It has a balance of $1,200 available in another account Y in the same bank to cover the oven When preparing its balance sheet, the company should report A. Cash of $700 B. Cash of $1,200 and current liability of $500 C. $500 as compensating balance D. in the footnotes that it has an overdraft