Question

Record the journal entry for Sales and for Cash Over and Short for each of the following separate situations.a. The cash registerâs record shows $420 of cash sales, but the count of cash in the register is $430.b. The cash registerâs record shows $980 of cash sales, but the count of cash in the register is $972.

Answer 1

Answer and Explanation:

The journal entry is shown below:

Cash $430

To Sales revenue $420

To Cash over and short $10

(Being cash is recorded)

Here cash is debited as it increased the assets and credited the sales as it also increased the revenue

Cash $972

Cash over and short $8

To Sales revenue $980

(being cash is recorded)

Here cash is debited as it increased the assets and credited the sales as it also increased the revenue