Question

The store had cash sales on January 13, 2017 of $9,450.78, but as per cash count it shows cash is only $9,450.75. Which of the following account is included to record sales?

Select one:

a. Credit Cash Over and Short, $0.03

b. Credit Sales Revenue, $9,450.75

c. Debit Cash Over and Short, $0.03

d. Credit Cash, $9,450.78

Answer 1

The correct accounting entries to record the sales and cash discrepancy are Debit Cash for $9,450.75, Credit Sales Revenue for $9,450.78, and Debit Cash Over and Short for $0.03.

Step-by-step explanation:

The situation described involves a minor discrepancy between the cash sales recorded and the actual cash count for January 13, 2017. The amount of $9,450.78 was recorded as sales, but the cash counted is $9,450.75, which indicates that there is a shortage of $0.03. The appropriate accounting treatment for recording this transaction is to recognize the actual cash received and also account for the shortfall. Therefore, the correct entries would be to Debit Cash for $9,450.75, which is the actual cash count, Credit Sales Revenue for the full amount of sales, which is $9,450.78, and Debit Cash Over and Short for $0.03 to account for the difference.