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College Accounting (Book Only): A ...

13th Edition
Scott + 1 other
ISBN: 9781337280570

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BuyFindarrow_forward

College Accounting (Book Only): A ...

13th Edition
Scott + 1 other
ISBN: 9781337280570
Textbook Problem

The Cash Short and Over account covers both shortages and overages that occur in a business. What is the correct entry to record a shortage in the Cash Short and Over account? Where will the account appear on the income statement?

  1. a. DR Cash Short and Over; Expense
  2. b. CR Cash Short and Over; Income
  3. c. DR Cash Short and Over; Income
  4. d. CR Cash Short and Over; Expense
  5. e. None of the above; the Cash Short and Over account appears on the balance sheet.

To determine

Find the correct option, the option that indicates the correct journal entry for the given transaction.

Explanation

Cash Short and Over account: Cash Short and Over is an income statement (expense or revenue) account. The increase (overage) is credited and recorded as Revenue, and decrease (shortage) is debited and recorded as Expense...

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