Cash Sales for the Day Amount to $1,553

question 136

Multiple Choice

Cash sales for the day amount to $1,553.83. The cash count of the cash register amounts to $1,554.95. The journal entry to record cash sales for the day will require:

• A)a debit to Cash for $1,553.83.
• B)a credit to Sales Revenue for $1,554.95.
• C)a debit to Cash Short and Over for $1.12.
• D)a credit to Cash Short and Over for $1.12.

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Definitions:

AQL

Acceptable Quality Level, a statistical measurement used in quality control that defines the maximum number of defective items allowed in a sample lot.

Type II Error

Statistically, the probability of accepting a bad lot.

Bad Lot

A batch of products that fails to meet quality specifications or standards, often leading to rejection or rework.

LTPD

The Lot Tolerance Percent Defective, which refers to the maximum acceptable defect rate in a sample lot for the lot to be accepted.