Vanessa's Gymnastics' Cash Register Tapes Do Not Agree with Cash

question 57

Multiple Choice

Vanessa's Gymnastics' cash register tapes do not agree with cash receipts.The facts are: total cash register tapes $400;total coins and currency $404.The summary journal entry to record the day's transactions would include a:

• A)$400 debit to Cash;$4 debit to Cash Short and Over;and $404 credit to Service Revenue.
• B)$404 debit to Cash;$4 credit to Cash Short and Over;and $400 credit to Service Revenue.
• C)$404 debit to Cash and $404 credit to Service Revenue.
• D)$400 debit to Cash and $400 credit to Service Revenue.

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Definitions:

Price Ceiling

A government-imposed limit on how high a price can be charged for a product, service, or resource, usually to protect consumers.

Price Floor

A government or regulatory minimum price that must be paid for a good or service, intended to prevent prices from falling too low.

Shortage

A market condition where demand exceeds supply.

Surplus

A situation where the quantity of a good or service supplied exceeds the quantity demanded, often resulting in excess stock and potential price reductions.