During the month of July, Clanton Industries issued a check in the amount of $845 to a supplier on account. The check did not clear the bank during July. In preparing the July 31 bank reconciliation, the company should:

A. Deduct the check amount from the book balance of cash.
B. Add the check amount to the book balance of cash.
C. Make a journal entry in the company records for an error.
D. Add the check amount to the bank balance.
E. Deduct the check amount from the bank balance.


Answer: E

Business

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