Cash Sales from the cash register tapes totaled $882.There is a change fund of $100.The cash count indicates that $984 is in the cash drawer.What journal entry would be required?

Question

Quizplus · Accepted Answer

The journal entry should account for the cash sales, change fund, and the actual cash counted in the drawer. The entry should also include any difference or discrepancy between the expected and actual amounts, which is recorded as Cash Short and Over.

Debit Cash for the total amount of cash counted in the drawer, including the change fund: $100 + $984 = $1084.
Debit Cash Short and Over for the difference between the cash counted and the cash sales: $1084 - $882 = $202 (which will be credited if there is excess cash).
Credit Revenues for the total cash sales: $882.
Therefore, the correct journal entry is:

Debit: Cash $884
Debit: Cash Short and Over $2
Credit: Revenues $882

Cash Sales from the Cash Register Tapes Totaled $882