At the End of the Day, the Cash Register's Record

question 171

Multiple Choice

At the end of the day, the cash register's record shows $1,050, but the count of cash in the cash register is $1,055. The correct entry to record the cash sales is:

• A)Debit Cash $1,055; Credit Sales $1,055.
• B)Debit Cash $1,055; credit Cash Over and Short $5; credit Sales $1,050.
• C)Debit Cash $1,050; credit Sales $1050.
• D)Debit Cash $1,050; debit Cash Over and Short $5; credit Sales $1,055.
• E)Debit Cash Over and Short $5; credit Sales $5.

---

Definitions:

Closing Entries

Journal entries made at the end of an accounting period to transfer temporary account balances to permanent accounts and prepare the company’s books for the next accounting period.

Merchandise Inventory

Goods that a company holds in stock with the intent to sell them as part of its business operations.

Purchase Discount

A reduction in the price of goods that a buyer can avail of for making early payments to the seller.

Sales Discount

A reduction in the price of goods or services offered to a customer, typically used to incentivize prompt payment.