Red Pine, Inc. established a $400 petty cash fund several months ago and replenishes it at the end of each month. During the first two weeks of March, $185 was disbursed from the petty cash box for miscellaneous items. If a surprise count of the fund is made on March 15, the petty cash box should contain:

Question

Quizplus · Accepted Answer

Since $185 has been disbursed from the petty cash box during the first two weeks of March, the amount left in the box would be $215 ($400 - $185). Therefore, the petty cash box should contain $215 in cash and receipts for $185 in expenditures on March 15. Option A is incorrect because it doesn't account for the disbursement made in March. Option B is incorrect because it only includes the remaining amount in the petty cash box and not the receipts for the disbursement. Option C is incorrect because it assumes that the same amount of $400 is added to the petty cash fund each month, regardless of the disbursement made.