At the end of the day, the cash register's record shows $1,250, but the count of cash in the cash register is $1,245. The correct entry to record the cash sales is
A) Debit Cash $1,245; Credit Sales $1,245.
B) Debit Cash $1,245; debit Cash Over and Short $5; credit Sales $1,250.
C) Debit Cash $1,250; credit Sales $1,250.
D) Debit Cash $1,250; credit Sales $1,245, credit Cash Over and Short $5.
E) Debit Cash Over and Short $5, credit Sales $5.

Question

Quizplus · Accepted Answer

This entry is called the "Cash Short and Over" entry. It is necessary to record the $5 difference between the register count and the recorded sales amount. In this case, we debit Cash for the actual amount in the register ($1,245), debit Cash Short and Over for the difference ($5), and credit Sales for the amount of recorded sales ($1,250). This entry ensures that the sales are recorded at the correct amount and the cash count is accurate.

At the End of the Day, the Cash Register's Record