scenario 4: innovate tech solutions\ninnovate tech solutions found a recording error while reconciling its…

scenario 4: innovate tech solutions\ninnovate tech solutions found a recording error while reconciling its account on december 31.\nbalance per bank statement: $25,678\nbalance per books: $24,534\noutstanding checks: $3,100\ndeposits in transit: $2,000\nerror: the company recorded check #987 for office supplies as $450, but it cleared the bank for the correct amount of $540.\nas per yesterday’s lesson (and including this scenario), where does the error occur?\nbank side\nbook side\nboth\nneither

scenario 4: innovate tech solutions\ninnovate tech solutions found a recording error while reconciling its account on december 31.\nbalance per bank statement: $25,678\nbalance per books: $24,534\noutstanding checks: $3,100\ndeposits in transit: $2,000\nerror: the company recorded check #987 for office supplies as $450, but it cleared the bank for the correct amount of $540.\nas per yesterday’s lesson (and including this scenario), where does the error occur?\nbank side\nbook side\nboth\nneither

Answer

Brief Explanations:

The company recorded check #987 for office supplies incorrectly in its books. The bank cleared it for the correct amount. So the error is in the company's book - keeping, not in the bank's records.

Answer:

B. Book side