At the end of the day,the cash register tape shows $1,020 in cash sales but the count of cash in the register is $1,035.The proper entry to account for this excess is:
A)Debit Cash $1,020;credit Sales $1,020.
B)Debit Cash $1,035;credit Sales $1,035.
C)Debit Cash $1,035;credit Sales $1,020;credit Cash Over and Short $15.
D)Debit Cash $1,020;debit Cash Over and Short for $15;credit Sales $1,035.
E)Debit Cash Over and Short $15;credit Cash $15.

Question

Quizplus · Accepted Answer

This entry recognizes the $1,020 in sales that were actually recorded, but also accounts for the $15 in excess cash. The overage is recorded as "Cash Over and Short" which is a separate account used to track discrepancies between the cash count and the sales records.

At the End of the Day,the Cash Register Tape Shows