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.The journal entry to replenish the fund on January 31 is:

Question

Quizplus · Accepted Answer

The correct entry involves debiting the expenses and the cash overage, then crediting cash for the total amount spent plus the overage, which equals $320 spent + $4 overage = $324. The petty cash fund itself is not directly credited in the replenishment process; instead, the actual cash account is credited to reflect the outflow of cash to replenish the fund.