The entry to record reimbursement of the petty cash fund for postage expense should include:

Question

Quizplus · Accepted Answer

The entry to record reimbursement of the petty cash fund for postage expense will involve increasing the postage expense account, which is an expense account, because the petty cash was used for that expense. Therefore, a debit to Postage Expense account will be made. Petty Cash account is not involved in the entry because the fund is being replenished - it is not an expense, so option A is incorrect. Cash Short and Over is used to record differences in petty cash that cannot be explained, so option B is also wrong. Supplies are not involved in postage expenses, so option C is incorrect. Since the reimbursement involves giving cash, there is a credit to Cash account which is not listed as an option, therefore, the best option is D.

The Entry to Record Reimbursement of the Petty Cash Fund