Name Brand Electronics’ accountant wrote a check to a supplier for inventory in the amount of $1,600 but erroneously recorded it on the company’s books as $1,060. She discovered this when she saw the monthly bank statement and noticed that the check had cleared the bank for $1,600. How would this be handled on the bank reconciliation? Enter the transaction into the accounting equation Name Brand’s accountant needs to make to correct its accounting records.
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