The following selected transactions relate to cash collections for a firm that maintains a $100 change fund at all times. Present entries to record the transactions for each of the two days of cash receipts from sales.

Required:

(a) On December 30, actual cash in cash register, $5,058; cash receipts per cash register tally, $5,081

(b) On December 31, actual cash in cash register, $3,612; cash receipts per cash register tally, $3,499

Refer to the Chart of Accounts for exact wording of account titles.

a. Dr Cash $ $4,958

Dr Cash over and short $123

Cr Sales $5,081

b. Dr Cash $3,512

Cr Cash over and short $13

Cr Sales $3,499

Explanation:

a) According to the given data we hace the following:

Actual Cash in register $5,058 and cash receipts $5,081

$5,058-$100=$4,958

Therefore, Dr cash over and short=$5,081-$4,958=$123

Therefore, the journal entry would be as follows:

Dr Cash $ $4,958

Dr Cash over and short $123

Cr Sales $5,081

b) Actual cash in cash register $3,612 and cash receipts $3,499

$3,612-$100=$3,512

Therefore, Dr cash over and short=$3,512-$3,499=$13

Therefore, the jorunal entry would be as follows:

Dr Cash $3,512

Cr Cash over and short $13

Cr Sales $3,499