Pelcher Co.maintains a $400 petty cash fund.On January 31,the fund is replenished.The accumulated receipts on that date represent $110 for office supplies,$140 for merchandise inventory,and $70 for miscellaneous expenses.There is a cash overage of $4.Based on this information,the amount of cash in the fund before the replenishment is:

Question

Quizplus · Accepted Answer

The amount of cash in the fund before replenishment can be calculated by subtracting the total expenses and the overage from the original fund amount. The total expenses are $110 (office supplies) + $140 (merchandise inventory) + $70 (miscellaneous expenses) = $320. Including the $4 overage, the total outflow is $320 + $4 = $324. Therefore, the cash in the fund before replenishment is $400 (original fund) - $324 (expenses + overage) = $76. However, the presence of a cash overage means there was more cash than expected, so the actual cash before replenishment is $76 + $4 (overage) = $80, indicating an error in calculation. The correct calculation should consider the overage as part of the cash left, not as an additional expense. Thus, the correct cash before replenishment is $400 - $320 = $80, but considering the overage as an error in the initial explanation, the correct answer reflecting the cash before replenishment, including the overage correctly, would be $80 + $4 = $84.