At the end of the day,the cash register tape shows $1,000 in cash sales but the count of cash in the register is $1,010.The proper entry to record the cash sales is:
A)Debit Cash $1,000; credit Sales $1,000.
B)Debit Cash $1,010; credit Sales $1,010.
C)Debit Cash $1,010; credit Sales $1,000; credit Cash Over and Short $10.
D)Debit Cash $1,000; debit Cash Over and Short for $10; credit Sales $1,010.
E)Debit Cash Over and Short $10; credit Cash $10.

Question

Quizplus · Accepted Answer

The cash count is higher than the sales amount, indicating that there is a cash overage. Therefore, the entry to record the cash sales should credit the sales account for the correct amount ($1,000) and credit a new account called "Cash Over and Short" for the overage amount ($10). The debit should be to the cash account for the total amount counted in the register ($1,010).

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