The amount of cash in the cash register from sales totals $534. The amount for sales recorded on the cash register tape was $530. Which journal entry is required?

Question

Quizplus · Accepted Answer

The amount of cash in the register is $534, which should be recorded as Cash in Bank account. The sales recorded on the tape are $530, which should be recorded as Sales. As there is a difference of $4, it should be recorded as Cash Over and Short account. Therefore, the journal entry should be Cash in Bank $534, Sales $530, and Cash Over and Short $4. The option C correctly records all the accounts involved.

The Amount of Cash in the Cash Register from Sales