Question

Item 5At the end of the day, the cash register's record shows $2,050, but the count of cash in the cash register is $2,058. The correct entry to record the cash sales is

Answer 1

Debit Cash $2,058; credit Cash Over and Short $8; credit Sales $2,050

Step-by-step explanation:

The journal entry is shown below:

Cash Dr $2,058

To cash over and short $8

To sales $2,050

(Being the cash sales is recorded)

Here the cash is debited as it increased the assets and sales is credited as it increased the revenue and the difference is credited to the cash over and short