If a check correctly written and paid by the bank for $272 is incorrectly recorded in the company's books for $227, how should this error be treated on the bank reconciliation?

A. Add $45 to the book balance.
B. Add $45 to the bank's balance.
C. Subtract $45 from the bank's balance and add $45 to the book's balance.
D. Subtract $45 from the book balance.
E. Subtract $45 from the bank's balance.


Answer: D

Business

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