At the end of the day, the cash register's record shows $1,050, but the count of cash in the cash register is $1,055. The correct entry to record the cash sales and its overage is
A)Debit Cash $1,055; credit Sales $1,055.
B)Debit Cash $1,055; credit Cash Over and Short $5; credit Sales $1,050.
C)Debit Cash $1,050; credit Sales $1050.
D)Debit Cash $1,050; debit Cash Over and Short $5; credit Sales $1,055.
E)Debit Cash Over and Short $5; credit Sales $5.

Question

Quizplus · Accepted Answer

This entry records both the cash sales and the overage/shortage. The debit to Cash for $1,055 represents the actual amount of cash counted in the register, while the credit to Sales for $1,050 represents the amount of cash sales recorded by the register. The credit to Cash Over and Short for $5 represents the difference between the two amounts. This account is used to track any discrepancies between the cash sales recorded and the actual cash counted, and it should be reviewed regularly to identify and correct any issues.

At the End of the Day, the Cash Register's Record