BuyFindarrow_forward

Accounting

27th Edition
WARREN + 5 others
ISBN: 9781337272094

Solutions

Chapter
Section
BuyFindarrow_forward

Accounting

27th Edition
WARREN + 5 others
ISBN: 9781337272094
Textbook Problem

Entry for cash sales; cash over

The actual cash received from cash sales was $71,315, and the amount indicated by the cash register total was $71,220. Journalize the entry to record me cash receipts and cash sales.

To determine

Petty cash fund: Petty cash fund is a fund established to pay insignificant amounts like postage, office supplies, and lunches. In day-to-day life, it becomes difficult to use checks for daily expenses. Therefore, companies maintain some minimum amount of funds in the hand for such daily expenses. These funds are called as petty cash funds. These funds are managed by custodian. This system is otherwise called as imprest system.

To journalize: Record cash receipts and cash sales.

Explanation
Petty Cash is an asset and is increased by $71,315. Sales have been made and it increases the equity value. So, credit Sales account with $71,220. Cash short and over is the account is credited when it is more. Therefore, credit Cash Short and Over account with missing amount of $95.

Cash over is determined as the difference between cash and sales...

Still sussing out bartleby?

Check out a sample textbook solution.

See a sample solution

The Solution to Your Study Problems

Bartleby provides explanations to thousands of textbook problems written by our experts, many with advanced degrees!

Get Started

Additional Business Solutions

Find more solutions based on key concepts

Show solutions add

Differentiate between dealer markets and stock markets that have a physical location.

Fundamentals of Financial Management, Concise Edition (MindTap Course List)

What is free cash flow? If you were an investor, why might you be more interested in free cash flow than net in...

Fundamentals of Financial Management, Concise Edition (with Thomson ONE - Business School Edition, 1 term (6 months) Printed Access Card) (MindTap Course List)