Question

At 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 multiple choice debit cash over and short $8, credit sales $8. debit cash $2,050; debit cash over and short $8; credit sales $2,058. debit cash $2,058; credit sales $2,058. debit cash $2,050; credit sales $2,050. debit cash $2,058; credit cash over and short $8; credit sales $2,050.

Answer 1

Debit Cash $2058; credit Cash Over and Short $8; credit Sales $2050

Cash over and short is an income statement account used to account for mistakes and differences in recorded sales and collected revenues.

Answer 2

Answer:

Correct answer is debit cash $2,058

Credit cash over and short $8

Credit sales $2,050

Explanation:

What’s happening with this scenario is that, based on the record, the sales for the day is only $2,050. Yet during the cash count, the actual cash is $2,058. As a result, there is an overage of $8 during the day. There are various instances why these things happened. This is not necessarily a fraud automatically. But a material amount in the cash over and short account is a warning sign to be considered by the management. Cash short and over account is an income statement account used to monitor how well an employee handled the entrusted cash related transactions.