2. Cash and cash receipts AaAa Cash includes coins, paper currency, checks, money orders, and money on deposit with a financial institution that the company can withdraw at any time. Cash is also the asset most likely to be stolen or improperly used. Thus, businesses carefully control cash and cash transactions. Despite these controls, human error can still cause accounting discrepancies. Consider the cash management of Villegas Convenience, a neighborhood convenience store that uses a cash register to manage cash purchases. At the end of each day, Villegas reconciles its cash sales with the amount of cash on hand. Suppose the cash register total for cash sales on August 13 is $2,698, but cash received from cash sales for the day is $2,700 ournalize the cash sales and receipts for August 13 JOURNAL Post. Ref. Debit Date Description Credit Aug. 13 Not sure about the account title? Click here to view the chart of accounts. Villegas Convenience completes its closing process at the end of every accounting period, or month, in this case. Each day, cash sales and cash receipts were slightly different, and sometimes there was a cash shortfall or surplus. Suppose that at the end of the month, Villegas's Cash Short and Over account has a credit balance. Which of the following statements is implied by Cash Short and Over's credit balance? O There was an accounting error, because a company cannot have a credit balance in Cash Short and Over at the end of an accounting period O There was a shortage of cash, because Villegas collected more cash from customers than it recorded in cash sales O There was a shortage of cash, because Villegas collected less cash from customers than it recorded in cash sales. O There was a surplus of cash, because Villegas collected more cash from customers than it recorded in cash sales