a check issued for $1,980 to pay a vendor on account was recorded in the firms records as $1,890; the…

a check issued for $1,980 to pay a vendor on account was recorded in the firms records as $1,890; the canceled check was properly listed on the bank statement at $1,980. to arrive at an accurate balance on a bank reconciliation statement, the error should be: multiple choice added to the bank statement balance. added to the book balance. deducted from the bank statement balance. deducted from the book balance.

a check issued for $1,980 to pay a vendor on account was recorded in the firms records as $1,890; the canceled check was properly listed on the bank statement at $1,980. to arrive at an accurate balance on a bank reconciliation statement, the error should be: multiple choice added to the bank statement balance. added to the book balance. deducted from the bank statement balance. deducted from the book balance.

Answer

Explanation:

Step1: Analyze the error

The firm recorded a check for $1,890 instead of the actual $1,980. So the book - balance is overstated.

Step2: Determine the correction

To correct the error, we need to reduce the book - balance to account for the under - recording of the check amount.

Answer:

D. deducted from the book balance