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Question(s) / Instruction(s):

If a check correctly written and paid by the bank for $790 is incorrectly recorded on the company\'s books for $754, how should this error is treated on the bank reconciliation?

a.            Subtract $36 from the book balance.

b.            Subtract $36 from the bank\'s balance.

c.             Subtract $36 from the bank\'s balance and add $36 to the book\'s balance.

d.            Add $36 to the book balance.

e.            Add $36 to the bank\'s balance.

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