If a check correctly written and paid by the bank for $491 is incorrectly recorded...
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Accounting
If a check correctly written and paid by the bank for $491 is incorrectly recorded on the companys books for $419, why is the appropriate treatment on the bank reconciliation to subtract $72 from the book's balance? Would that not understate the company's books by making the balance per books amount even smaller than the balance per bank?
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