The entry to record reimbursement of the petty cash fund for postage expense should include:
A) A debit to Postage Expense.
B) A debit to Petty Cash.
C) A debit to Cash.
D) A debit to Cash Short and Over.
E) A debit to Supplies.

Question

Quizplus · Accepted Answer

The reimbursement of the petty cash fund for postage expense is an increase in the postage expense, which is recorded as a debit to Postage Expense account. Petty Cash is not involved in this transaction, and neither is Cash Short and Over or Supplies. A credit to the Petty Cash account and a credit to Cash account should also be included in the entry. However, the question asks for the entry that records the reimbursement of the petty cash fund for postage expense, so the answer is a debit to Postage Expense.

The Entry to Record Reimbursement of the Petty Cash Fund