The entry to replenish a petty cash fund includes a credit to
A) Petty Cash.
B) Cash.
C) Freight-in.
D) Postage Expense.

Question

Quizplus · Accepted Answer

When replenishing a petty cash fund, cash is being added to the fund. Therefore, the entry should include a credit to Cash. Option A (Petty Cash) is incorrect because it is the account being replenished, not the account being credited. Options C (Freight-in) and D (Postage Expense) are unrelated to the replenishment of a petty cash fund and should not be included in the entry.

The Entry to Replenish a Petty Cash Fund Includes a Credit