A cash register tape reflected total sales equaling $100, but the cash in the cash register drawer equaled $105. Review the statements below and determine which is correct regarding this discrepancy. (Check all that apply.)

The extra $5 collected will be treated as a miscellaneous revenue.
The Cash Over and Short account will be credited for $5.
The Cash account will be debited for $105.
The Sales account will be credited for $100.

a}. The extra $5 collected will be treated as a miscellaneous revenue.

b). The Cash Over and Short account will be credited for $5.

c). The Cash account will be debited for $105.

d). The Sales account will be credited for $100.

Explanation:

The cash register and the cash register has a favorable variance of $5. It means cash has an over of $5.

In recording these transaction,  the $5 will be treated as miscellaneous revenue. It is immaterial revenue out of the normal business activities.  The $5 will be credited to the cash over and short accounts since its a positive balance. The day will be recorded as it is in the cash register tape. The sales account will be credited with $100. To balance the entry, the cash account will be debited with $105.

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