1: The combined cash count of all cash registers at the close of business is $110 less than the cash sales indicated by the cash register records. (a) In what account is the cash shortage recorded? (b) Are cash shortages debited or credited to this account?

2: The petty cash account has a debit balance of $800. At the end of the account-ing period, there is $110 in the petty cash fund, along with petty cash receipts totaling $690. Should the fund be replenished as of the last day of the period? Discuss.

3: The balance of Cash is likely to differ from the bank statement balance. What two factors are likely to be responsible for the difference?