Question

A bank correction of an error from recording a $50 check paid as $500 appears on the bank statement as a

a. debit memorandum that increases the account balance.
b. credit memorandum that decreases the account balance.
c. credit memorandum that increases the account balance.
d. debit memorandum that decreases the account balance.

Answer 1

A bank correction of an error from recording a $50 check paid as $500 appears on the bank statement as a debit memorandum that decreases the account balance.

Step-by-step explanation:

When a bank correction of an error occurs, it is reflected on the bank statement as a debit memorandum that decreases the account balance. In this case, the bank recorded a $50 check as $500, so the correction would result in a decrease in the account balance.