Esther has come to you for advice on how to record the above in one entry at the end of the week. Explain what accounts are used and show how the journal entry is recorded. JOURNAL Date Account Title and Explanation Debit Credit

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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The Penny Shack operates a local store that sells a variety of items with nothing costing more than $5.00.
Esther Eaton, the bookkeeper, is unsure of how to record cash transactions when the total is rounded to the nearest nickel.
For example the following transactions were recorded the week of May 9-14, 2022.
Monday
Tuesday
JOURNAL
Date
Wednesday
Thursday
Friday
Saturday
Totals
Cash received
Account Title and Explanation
$235.60
125.95
343.20
202.75
450.30
685.10
$2,042.90
Esther has come to you for advice on how to record the above in one entry at the end of the week.
Explain what accounts are used and show how the journal entry is recorded.
Total sales
Debit
$235.62
125.97
343.22
202.76
450.32
685.08
$2,042.97
Credit
Transcribed Image Text:The Penny Shack operates a local store that sells a variety of items with nothing costing more than $5.00. Esther Eaton, the bookkeeper, is unsure of how to record cash transactions when the total is rounded to the nearest nickel. For example the following transactions were recorded the week of May 9-14, 2022. Monday Tuesday JOURNAL Date Wednesday Thursday Friday Saturday Totals Cash received Account Title and Explanation $235.60 125.95 343.20 202.75 450.30 685.10 $2,042.90 Esther has come to you for advice on how to record the above in one entry at the end of the week. Explain what accounts are used and show how the journal entry is recorded. Total sales Debit $235.62 125.97 343.22 202.76 450.32 685.08 $2,042.97 Credit
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