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 total expenses are $320 ($110 + $140 + $70). With a cash overage of $4, the cash needed to replenish the fund is $316 ($320 - $4). The correct entry debits the expenses and credits Cash Over and Short for the overage, and credits Cash for the amount needed to replenish.