Question

A cash register tape reflected total sales equaling $100, but the cash in the cash register drawer equaled $105. Review the statements below and determine which is correct regarding this discrepancy. (Check all that apply.) The Sales account will be credited for $100. The Cash account will be debited for $105. The extra $5 collected will be treated as a miscellaneous revenue. The Sales account will be credited for $105. The Cash Over and Short account will be credited for $5. The Cash Over and Short account will be debited for $

Answer 1

Answer:

Sales account will be credited for $100

The cash account will be debited for $105

The cash over and short account will be for credited for the excess $5

The extra $5 will be treated as miscellaneous revenue

Explanation:

The accounting treatment of sales state that during a sale transaction , while the sales account is credited for the sales value , the cash or the account receivable is debited with corresponding value,

Untraceable cash is treated as miscellaneous.

While the cash account is a debit record of all the cash in possession , the cash over or short account is used to balance the excess of the cash that is not traceable to a particular transaction

Answer 2

Answer:

The answer is given below;

Explanation:

The $ 5 collected will be treated as miscellaneous revenue.The cash over and short account will be credited for $5.

As the cash receipts are $ 105 and sales revenue is $100.The difference amount will be treated as miscellaneous revenue.

The journal entry will be;

Cash   Dr.$105

Sales Revenue    Cr.$100

Miscellaneous revenue Cr.$5