Vanessa's Gymnastics' cash register tapes do not agree with cash receipts.The facts are: total cash register tapes $400; total coins and currency $404.The summary journal entry to record the day's transactions would include a:
A)$400 debit to Cash; $4 debit to Cash Short/Over; and $404 credit to Sales.
B)$404 debit to Cash; $4 credit to Cash Short/Over; and $400 credit to Sales.
C)$404 debit to Cash and $404 credit to Sales.
D)$400 debit to Cash and $400 credit to Sales.

Question

Quizplus · Accepted Answer

The total coins and currency received were $404, which means that this amount should be debited to Cash. However, the Cash register tapes only show $400, so there is a shortage of $4. This shortfall should be debited to Cash Short/Over account. The total sales made for the day should be credited to Sales, which in this case is $400. So the correct journal entry would be: $404 debit to Cash, $4 credit to Cash Short/Over, and $400 credit to Sales. Option B is the only one that matches this entry.

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