Question

Silver Co. has a $330 petty cash fund. At the end of the first month the accumulated receipts represent $56 for delivery expenses, $179 for merchandise inventory, and $25 for miscellaneous expenses. The fund has a balance of $70. The journal entry to record the reimbursement of the account includes a:

Answer 1

Answer and Explanation:

The journal entry is shown below:

Delivery expenses Dr $56

Merchandise inventory Dr $179

Miscellaneous expenses $25

                 To Cash $260

(Being the reimbursement of the account is recorded)

For recording this we debited all expenses and credited the cash as it increased the expenses and decreased the assets