On July 1, 2018, Cromartie Furniture established a $150 petty cash fund. A check for $150 was made out to the petty cash custodian. During July, the petty cash custodian paid the following bills from the petty cash fund: $\begin{array}{lr}
\text { Office supplies } & \$ 36 \
\text { Postage } & 22 \
\text { Delivery charges } & 40 \
\text { Bottled water } & 28 \
\text { Total } & \$ 126
\end{array}$
-At the end of July the petty cash fund was replenished. The journal entry to replenish the petty cash fund includes:

Question

On July 1, 2018, Cromartie Furniture established a $150 petty cash fund. A check for $150 was made out to the petty cash custodian. During July, the petty cash custodian paid the following bills from the petty cash fund: $\begin{array}{lr}
\text { Office supplies } & \$ 36 \
\text { Postage } & 22 \
\text { Delivery charges } & 40 \
\text { Bottled water } & 28 \
\text { Total } & \$ 126
\end{array}$ 
-At the end of July the petty cash fund was replenished. The journal entry to replenish the petty cash fund includes:

Quizplus · Accepted Answer

The correct journal entry to replenish the petty cash fund involves debiting various expenses for the total amount spent ($126) and crediting cash for the same amount, to reflect the cash leaving the main cash account to replenish the petty cash fund.

On July 1, 2018, Cromartie Furniture Established a $150 Petty