Answer :
To solve this problem, we need to determine the adjustment required to correct the accounting records so they reflect the actual amount of the check.
1. Identify the actual amount: The check was actually written for [tex]$78. 2. Identify the recorded amount: The company recorded the check as $[/tex]87.
3. Calculate the difference: The difference between the recorded amount and the actual amount needs to be found. To do this, subtract the actual amount from the recorded amount:
[tex]\[ \text{Difference} = \text{Recorded Amount} - \text{Actual Amount} \][/tex]
Substituting the given values, we get:
[tex]\[ \text{Difference} = 87 - 78 = 9 \][/tex]
4. Determine the adjustment: Since the recorded amount is higher than the actual amount, the company needs to decrease their records by this difference to correct the error.
Therefore, the company needs to decrease their recorded amount by [tex]$9. The correct answer is: A. decrease by $[/tex]9.
1. Identify the actual amount: The check was actually written for [tex]$78. 2. Identify the recorded amount: The company recorded the check as $[/tex]87.
3. Calculate the difference: The difference between the recorded amount and the actual amount needs to be found. To do this, subtract the actual amount from the recorded amount:
[tex]\[ \text{Difference} = \text{Recorded Amount} - \text{Actual Amount} \][/tex]
Substituting the given values, we get:
[tex]\[ \text{Difference} = 87 - 78 = 9 \][/tex]
4. Determine the adjustment: Since the recorded amount is higher than the actual amount, the company needs to decrease their records by this difference to correct the error.
Therefore, the company needs to decrease their recorded amount by [tex]$9. The correct answer is: A. decrease by $[/tex]9.
