Use the following information to answer questions On July 31, the office manager gives instruction to increase the petty cash fund to CHF300.
-The journal entry to replenish the petty cash fund would include a

Question

Use the following information to answer questions  On July 31, the office manager gives instruction to increase the petty cash fund to CHF300.
-The journal entry to replenish the petty cash fund would include a

Quizplus · Accepted Answer

When replenishing the petty cash fund, a credit entry is made to Cash for the amount of money being returned to the fund (in this case, CHF250), and a debit entry is made to each expense account for the amount of money that was spent from the fund. Based on the information provided, no mention is made of any discrepancies or shortages in the petty cash, so there would be no need to make an entry to Cash Over and Short (B) or Accounts Receivable (D). Therefore, the correct answer is C, which reflects the credit entry to Cash for CHF242.50 (CHF300 - CHF57.50 in expenses).

Use the Following Information to Answer Questions on July