Question

At the end of the day, the cash register's record shows $1,254, but the count of cash in the cash register is $1,247. The correct entry to record the cash sales is

Multiple Choice

• Debit Cash $1,247; debit Cash Over and Short $7; credit Sales $1,254.

• Debit Cash $1,247; Credit Sales $1,247.

• Debit Cash $1,254; credit Sales $1,254.

• Debit Cash $1,254; credit Cash Over and Short $1,247; credit Sales $7.

• Debit Cash Over and Short $7, credit Sales $7.

Answer 1

Answer is: Debit Cash $1,247; debit Cash Over and Short $7; credit Sales $1,254. Cash Over and Short is an expense account to show shortage and overage of the cash amount. So it is difference between expected cash balance and actual cash balance available