Silver Co.has a $200 petty cash fund.At the end of the first month the accumulated receipts represent $43 for delivery expenses,$127 for merchandise inventory,and $12 for miscellaneous expenses.The fund has a balance of $18.The journal entry to record the reimbursement of the account includes a:

Question

Quizplus · Accepted Answer

The total amount of the receipts ($43+$127+$12) is $182, which is the amount that needs to be reimbursed to the petty cash fund. Therefore, the journal entry would credit Cash for $182 to reimburse the fund. Option A is incorrect because debiting Petty Cash would decrease the balance of the fund, which is not the case here since the fund is being reimbursed. Option B is incorrect because it is only used when there is a shortage or overage in the petty cash fund. Option D is incorrect because it does not relate to the reimbursement of the petty cash fund. Option E is incorrect because there is no cash over or short in this scenario.

Silver CoHas a $200 Petty Cash Fund