Question

Record the journal entry for Sales and for Cash Over and Short for each of the following separate situations. The cash register's record shows $420 of cash sales, but the count of cash in the register is $430.

Answer 1

The journal entry for Sales would be a debit of $420 to Cash Sales and Sales Revenue, while the journal entry for Cash Over and Short would be a debit of $10 to Cash Over and Short and a credit of $10 to Sales Revenue.

Step-by-step explanation:

The journal entry for Sales would be:

1. Debit: Cash Sales - $420
2. Credit: Sales Revenue - $420

The journal entry for Cash Over and Short would be:

1. Debit: Cash Over and Short - $10
2. Credit: Sales Revenue - $10

When the cash register's record shows $420 of cash sales but the count of cash in the register is $430, the Sales Revenue account is debited for $420 to record the sales made.

The Cash Sales account is also debited for $420 to show the cash received from the sales. However, there is a discrepancy of $10 ($430 - $420) in the cash count, which is recorded as a debit in the Cash Over and Short account. To balance the entry, the Sales Revenue account is credited for $10.