Question

At the end of the day, the cash register's record shows $1,250, but the count of cash in the cash register is $1,245. The correct entry to record the cash sales is
A) Debit Cash $1,245; Credit Sales $1,245.
B) Debit Cash $1,245; debit Cash Over and Short $5; credit Sales $1,250.
C) Debit Cash $1,250; credit Sales $1,250.
D) Debit Cash $1,250; credit Sales $1,245, credit Cash Over and Short $5.
E) Debit Cash Over and Short $5, credit Sales $5.

Answer 1

Answer:

B) Debit Cash $1,245; debit Cash Over and Short $5; credit Sales $1,250.

Explanation:

If the cash register's record shows the amount of $1,250 while the count of cash in the cash register shows the amount of $1,245 which means that the Cash is Over and Short by $5.

Therefore the correct entry to record the cash sales is to Debit Cash For $1,245; Debit Cash Over and Short for $5 and Credit Sales for $1,250.

Debit Cash For $1,245

Debit Cash Over and Short $5

($1,250-$1,245)

Credit Sales $1,250

(To record cash sales)