Read each of the following transactions. Determine the accounts and amounts to be debited and credited. A) Issued a check for $100 to establish a petty cash accountB) Collected $2,200 from credit customers on accountC) Sold merchandise for $500 in cash plus sales tax of $30. There was a cash overage of $25D) Issued a check for $250 to Savannah, the owner, as a cash withdrawal for personal use
What will be an ideal response?
A) Debit Petty Cash $100; credit Cash $100
B) Debit Cash $2,200; credit Accounts Receivable $2,200
C) Debit Cash $555; credit Sales $500, Sales Tax Payable $30 and Cash Short or Over $25
D) Debit Savannah, Drawing $250; credit Cash $250
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Answer the following statement true (T) or false (F)