Question

Spencer Co. has a $290 petty cash fund. At the end of the first month the accumulated receipts represent $52 for delivery expenses, $163 for merchandise inventory, and $21 for miscellaneous expenses. The fund has a balance of $54. The journal entry to record the reimbursement of the account includes a:
A. Debit to Petty Cash for $290.
B. Debit to Cash Over and Short for $54.
C. Credit to Cash for $236.
D. Credit to Cash Over and Short for $54.
E. Credit to Inventory for $163.

Answer 1

Answer:

C

Explanation:

Petty cash = $290

Delivery Expenses - $52

Merchandise inventory - $163

Miscellaneous expenses - $ 21

Total petty cash expenses - $236

Petty fund balance - $54

Reimbursement = $236

Credit cash $236, Debit Petty fund $236