Question

At the end of the day, the cashiers rung up sales of 5,000 and counted on the cash count sheets deposited5,100, the accounting department would make a journal entry for the days sales that includes __________.

Answer 1

The accounting department would record a journal entry with $5,000 in sales revenues and address the $100 overage according to company policy, possibly as an Unearned Revenue or Cash Over and Short.

Step-by-step explanation:

When cashiers at the end of the day ring up sales of $5,000 and the cash count sheets show $5,100 deposited, the accounting department would make a journal entry that includes a revenue record for the $5,000 in sales and an additional entry to account for the $100 overage.

This overage could be recorded as a liability (such as Unearned Revenue or Cash Over and Short) or potentially as additional revenue if it's determined to be the result of a sale not recorded. The exact treatment of the overage depends on company policy and the circumstances of the overage. If the overage is intended as additional income, then the company may see a higher accounting profit, as per the chapter's definition where accounting profit equals total revenues minus explicit costs.