Question

The cashier for Bell Buoy rang up sales totaling $5,104, but had $5,120 to deposit, which journal entry would be recorded? Multiple Choice A debit to Cash for $5,120, a credit to Cash Overage for $16, and a credit to Sales Revenue for $5,104. A debit to Sales for $5,120, a debit to Cash Overage for $16, and a credit to Cash for $5,104. A debit to Cash for $5,104, a debit to Cash Shortage for $16, and a credit to Sales Revenue for $5,120. A debit to Cash for $5,104, a debit to Cash Shortage for $16, and a credit to Unearned Revenue for $5,120.

Answer 1

Answer:

A debit to Cash for $5,120, a credit to Cash Overage for $16, and a credit to Sales Revenue for $5,104.

Explanation:

In the current situation, the cash received is in excess of revenue recorded, thus, there will be cash overage.

As per books cash shall be $5,104 but since actual cash is $5,120 there is cash overage of $16

Therefore, for this, actual cash received shall be debited = $1,520

Cash overage shall be credited for $16

And accordingly sales of $5,104 shall be recorded as a credit.

Thus, correct option is: Entry A