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When Belle's Beauty Boutique (BBB) was performing its bank reconciliation for the month ending February 28, 20X5, it observed that the bank correctly deducted $230
When Belle's Beauty Boutique (BBB) was performing its bank reconciliation for the month ending February 28, 20X5, it observed that the bank correctly deducted $230 for cheque #3562. However, that cheque was incorrectly recorded in the general ledger as $320. What action must BBB take to ensure that its bank reconciliation balances?
- a)Add $90 to the bank balance on the bank statement.
- b)Add $90 to the cash balance in the general ledger.
- c)Subtract $90 from the bank balance on the bank statement.
- d)Subtract $90 from the cash balance in the general ledger.
** note I unlocked this answer on course hero and it says B is correct. Why wouldn't it be D? If the bank did it correctly shouldn't we be subtracting 90 from 320 to make it 230 which would be correct?
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