The entry to replenish a $200 petty cash fund, which has cash of $40 and valid receipts for $148, would include

Question

Quizplus · Accepted Answer

The correct entry to replenish a petty cash fund involves crediting the Cash account for the amount needed to bring the petty cash fund back to its original level. In this case, the fund has $40 in cash and receipts for $148, totaling $188. Since the fund should be at $200, you need to add $160 ($200 - $40) to replenish it. Therefore, you credit Cash for $160.

The Entry to Replenish a $200 Petty Cash Fund, Which