Vanessa's Gymnastics' cash register tapes do not agree with cash receipts. The facts are: total cash register tapes $300; total coins and currency $304. The summary journal entry to record the day's transactions would include a
A) $300 debit to Cash; $4 debit to Cash Short/Over; and $304 credit to Sales.
B) $304 debit to Cash; $4 credit to Cash Short/Over; and $300 credit to Sales.
C) $304 debit to Cash and $304 credit to Sales.
D) $300 debit to Cash and $300 credit to Sales.

Question

Quizplus · Accepted Answer

The correct entry includes a $304 debit to Cash to reflect the actual amount of coins and currency received, a $4 credit to Cash Short/Over to account for the overage compared to the cash register tapes, and a $300 credit to Sales to record the sales amount per the cash register tapes.

Vanessa's Gymnastics' Cash Register Tapes Do Not Agree with Cash