If a check correctly written and paid by the bank for $749 is incorrectly recorded in the company's books for $794, how should this error be treated on the bank reconciliation?
A) Subtract $45 from the bank's balance.
B) Add $45 to the bank's balance.
C) Subtract $45 from the book balance.
D) Add $45 to the book balance.
E) Subtract $45 from the bank's balance and add $45 to the book's balance.
D) Add $45 to the book balance.
Explanation: $749 - $794 = $45 too much deducted from the company's cash account balance that must be added back to cash.
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