A $200 petty cash fund has cash of $20 and receipts of $177. The journal entry to replenish the account would include a credit to

Question

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The journal entry to replenish the petty cash fund should include a debit to cash for the amount of cash paid out (in this case, $177), and a credit to petty cash for the same amount. Additionally, since the amount of cash on hand ($20) is less than the established fund amount ($200), the difference of $180 also needs to be credited to cash to bring the cash balance back up to the established fund amount. Therefore, option D is the best choice as it includes a credit to cash for $180 to bring the balance back up to $200. Option A is incorrect as it only credits cash for the amount of cash on hand, while options B and C are incorrect as they do not credit cash for the additional $180 needed to bring the balance back up to $200.

A $200 Petty Cash Fund Has Cash of $20 and Receipts