At the end of the month,employees have made the following expenditures from the petty cash fund and with company-issued credit cards.None of these transactions has been recorded previously.Accounting for these employee purchases would include a: Supplies (pett cash) $= \$ 50$
Delivery $($ petty cash $) = \$ 75$
Advertising (credit card) $= \$ 1,100$
Equipment (credit card) $= \$ 4,200$
A)Credit to Petty Cash for $5,425.
B)Credit to Accounts Payable for $5,300.
C)Credit to Equipment for $4,200.

Question

Quizplus · Accepted Answer

Petty cash transactions are recorded when replenished, affecting various expense accounts, not the Petty Cash account directly. Credit card transactions increase Accounts Payable, not the individual expense or asset accounts, hence the correct entry involves crediting Accounts Payable for the total credit card expenditures ($1,100 + $4,200 = $5,300).

At the End of the Month,employees Have Made the Following =$50= \$ 50=$50

At the End of the Month,employees Have Made the Following $= \$ 50$