Havermill Co. establishes a $250 petty cash fund on September 1. On September 30, the fund is reimbursed. The accumulated receipts on that date represent $73 for Office Supplies, $137 for merchandise inventory, and $22 for miscellaneous expenses. The fund has a balance of $18. On October 1, the accountant determines that the fund should be increased by $50. The journal entry to record the reimbursement of the fund on September 30 includes a:

Question

Quizplus · Accepted Answer

The reimbursement of the petty cash fund involves recording the expenses incurred. Therefore, a debit to Office Supplies for $73 is part of the journal entry to reflect the use of funds for office supplies.