Question

A cach regater tape reflected: total sales equeing $100, but the cash in the determine which is conect regarding this discrepancy cach register drawer equaled $105 Review the statements below and

a. The extra $S collected will be treated as a macellaneous revenue
b. The Sales account will be credited for $105
c. Geaton: It will be credited for $100
d. The Cash Over and Short account will be defited for $5
e. Reason: It will he credited for $5. The Cash Over and Short account can be detuted or credents the son of will be credited
f. The Cash Over and Short account will be credited for $5
g. The Sales account will be credited for 3100
h. The Cash account will be debited for $105

Answer 1

The question involves an accounting discrepancy where the cash register shows more money than reported sales. The correct action is to debit the Cash account for the amount present in the drawer, $105 in this instance, and make corresponding entries for sales and any overage.

Step-by-step explanation:

The student's question revolves around an accounting discrepancy found in a cash register compared to reported sales. When a cash register tape reflects total sales of $100 but the cash drawer contains $105, an overage occurs. In accounting terms, this typically means that there is more cash than expected based on the sales records. The correct journal entry to rectify this situation involves debiting the Cash account for the actual amount in the drawer, which is $105 in this case.

An example of such an entry would be to debit Cash for $105 and credit Sales for $100, with the difference of $5 possibly credited to an account that reflects overages or miscellaneous income. The statement given by the student that 'The Cash account will be debited for $105' is indeed correct and represents the action required to accurately reflect the physical cash present.