$2.$ Bank Reconciliation $($Exhibit $2)$: The account receivable collected by the bank was paid by a client directly to the bank on December $29,$ year$5.$ Keystone recorded the entry for the proper amount on January $2,$ year $6.$

No adjusting entry is needed as of $12/31/$year $5.($Callout #$2)$

Choose an option below to repalce Callout #$2.$

a$.[$Original text $($Keep as is$)]$ No adjusting entry is needed as of $12/31/$year $5.$

b$.[$Delete entire point $2]$

c$.$ We should propose an adjusting entry as of $12/31/$year $5$ debiting cash and crediting accounts receivable for $$6,000.$

d$.$ We should propose an adjusting entry as of $12/31/$year $5$ debiting cash and crediting miscellaneous revenues as net income is understated as of $12/31/$year $5.$

e$.$ We should increase our assessed level of fraud risk due to this situation and propose no adjusting entry as of $12/31/$year $5.$