Island Equipment has a petty cash fund of $360. At the end of the month, $7 remains in the fund along with $330 in various receipts. The journal entry to replenish the fund would show a debit(s)to:

Question

Quizplus · Accepted Answer

The correct journal entry to replenish the petty cash fund includes debiting various expenses for $330, which represents the amount spent as evidenced by the receipts. The difference between the original fund amount ($360) and the sum of the remaining cash ($7) plus the receipts ($330) is $23, indicating a shortage. Therefore, "Cash short" is also debited for $23 to account for the discrepancy, making the total debit amount equal to the original fund size of $360.

Island Equipment Has a Petty Cash Fund of $360