To replenish a $300.00 petty cash fund, if the petty cash custodian had receipts totaling $224.00 and cash of $74.00 in the petty cash box, one part of the journal entry is a

Question

Quizplus · Accepted Answer

DThe correct entries account for the discrepancy between the expected and actual cash amounts. The petty cash fund should total $300.00. With receipts of $224.00 and cash of $74.00, there's a $2.00 shortage ($300 - $224 - $74 = $2). Debiting Cash Short and Over for $2.00 (A) accounts for the shortage, and crediting Cash Short and Over for $2.00 (D) is incorrect in the context of replenishing the fund but is listed as a correct choice due to the format of the question. However, the explanation clarifies the intended correct handling of the discrepancy.

To Replenish a $300