Solved: How to detect the error of incorrectly recorded check, Accounting Basics

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How to detect the error of incorrectly recorded check

Response to the following problem:

During the preparation of the bank reconciliation for Apache Grading Co., Sarah Ferrari, the assistant controller, discovered that Rocky Spring Bank incorrectly recorded a $610 check written by Apache Grading Co. as $160. Sarah has decided not to notify the bank but wait for the bank to detect the error. Sarah plans to record the $450 error as Other Income if the bank fails to detect the error within the next three months.

Discuss whether Sarah is behaving in a professional manner.

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Accounting Basics: How to detect the error of incorrectly recorded check

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