# 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.

### Accounting

27th Edition
WARREN + 5 others
Publisher: Cengage Learning,
ISBN: 9781337272094

### Accounting

27th Edition
WARREN + 5 others
Publisher: Cengage Learning,
ISBN: 9781337272094

#### Solutions

Chapter
Section
Chapter 8, Problem 8.13EX
Textbook Problem

## Entry for cash sales; cash overThe 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.

Expert Solution
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 of Solution

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...

### Want to see the full answer?

Check out a sample textbook solution.See solution

### Want to see this answer and more?

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

See solution