Question

A cash register tape reflected total sales equaling $100, but the cash in the cash register drawer equaled $105, Review the statements below and determine which is correct regarding this discrepancy. The extra $5 collected will be treated as a miscellaneous revenue. The Sales account will be credited for $105. Reasonc It will be credited for $100. The Cash Over and Short account will be debited for $5. Reason: it will be credited for $5. The Cash Over and Shont account can be debited or credited. In this stuation it will be credited The Cash Over and Short account will be credited for $5. The Sales account will be credited for $100. The Cash account will be debited for $105.

Answer 1

The correct statements regarding the discrepancy are that the Sales account will be credited for $100, the Cash Over and Short account will be debited for $5, and the Cash account will be debited for $105.

Step-by-step explanation:

In this situation, the correct statement regarding the discrepancy is:

• The Sales account will be credited for $100. Reason: It will be credited for $100.
• The Cash Over and Short account will be debited for $5. Reason: It will be debited for $5.
• The Cash account will be debited for $105.

When the cash register tape reflects total sales of $100, it means that $100 worth of products or services were sold. The Sales account will be credited for this amount because sales are recorded as a credit in accounting. Since the cash in the cash register drawer is $105, there is an extra $5 collected. This extra amount is considered an overage and will be debited to the Cash Over and Short account. To balance the equation, the Cash account will be debited for the total amount in the cash register drawer, which is $105.