Vanessa's Gymnastics' cash register tapes do not agree with cash receipts. The facts are: total cash register tapes $410; total coins and currency $416. The summary journal entry to record the day's transactions would include a:
A) $410 debit to Cash; $6 debit to Cash Short and Over; and $416 credit to Service Revenue.
B) $416 debit to Cash; $6 credit to Cash Short and Over; and $410 credit to Service Revenue.
C) $416 debit to Cash and $416 credit to Service Revenue.
D) $410 debit to Cash and $410 credit to Service Revenue.

Question

Quizplus · Accepted Answer

The correct entry accounts for the actual cash received ($416) and records the discrepancy ($6) as a credit to Cash Short and Over, balancing with the expected revenue ($410).

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