georges grocers keeps a $100 change fund in its cash register. the cash sales per the cash register tape on…

georges grocers keeps a $100 change fund in its cash register. the cash sales per the cash register tape on january 30 were $405. the cash count was $502. identify the correct journal entry below to record the sales and cash overage (or shortage) for january 30.\noption account title debit credit\n(a) cash 402\ncash short or over 3\nsales 405\n(b) cash 502\nsales 502\n(c) sales 505\ncash short or over 3\ncash 502\n(d) cash 405\nsales 405

georges grocers keeps a $100 change fund in its cash register. the cash sales per the cash register tape on january 30 were $405. the cash count was $502. identify the correct journal entry below to record the sales and cash overage (or shortage) for january 30.\noption account title debit credit\n(a) cash 402\ncash short or over 3\nsales 405\n(b) cash 502\nsales 502\n(c) sales 505\ncash short or over 3\ncash 502\n(d) cash 405\nsales 405

Answer

Explanation:

Step1: Calculate actual cash from sales

The change - fund is $100 and the total cash count is $502. So the cash from sales is $502 - $100=$402.

Step2: Determine cash over/short

The cash sales per the register tape is $405. The actual cash from sales is $402. So there is a cash shortage of $405 - $402 = $3.

Step3: Journal - entry logic

We debit Cash for the actual cash received from sales ($402), debit Cash short or over for the shortage amount ($3), and credit Sales for the amount per the register tape ($405).

Answer:

A. Cash 402, Cash short or over 3, Sales 405