Question

During the month of July, Clanton Industries issued a check in the amount of $878 to a supplier on account. The check did not clear the bank during July. In preparing the July 31 bank reconciliation, the company should:

Answer 1

Answer:

Deduct the check amount from the bank balance.

Explanation:

Since the check is issued for $878 to a supplier on an account

Also the check does not clear by the bank during the month of July

So while preapring the July 31 bank reconcillation, the company should deduct the check amount from the balance of the bank

Hence, the correct option is a.

All other options are wrong