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 account for this excess 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 excess of $10 needs to be accounted for in the Cash Over and Short account, which is a contra account to Cash. Therefore, the proper entry would be to debit Cash for the actual amount of cash received ($1,010), credit Sales for the actual amount of sales ($1,000), and credit Cash Over and Short for the excess amount ($10).

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