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13 May, 08:17

Spencer Co. has a $350 petty cash fund. At the end of the first month the accumulated receipts represent $58 for delivery expenses, $187 for merchandise inventory, and $27 for miscellaneous expenses. The fund has a balance of $78. The journal entry to record the reimbursement of the account includes a:

A. Credit to Cash for $272.

B. Credit to Cash Over and Short for $78.

C. Debit to Cash Over and Short for $78.

D. Debit to Petty Cash for $350.

E. Credit to Inventory for $187.

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Answers (2)
  1. 13 May, 09:11
    0
    A. Credit to Cash for $272.

    Explanation:

    The journal entry for the reimbursement of the account is as follows:

    Delivery expenses A/c Dr. $58

    Merchandise inventory A/c Dr. $187

    Miscellaneous expenses A/c Dr. $27

    To Cash A/c $272
  2. 13 May, 09:45
    0
    Answer: Option (A) is correct.

    Explanation:

    Given that,

    petty cash fund = $350

    accumulated receipts for delivery expenses = $58

    merchandise inventory = $187

    miscellaneous expenses = $27

    fund has a balance = $78

    Therefore,

    The journal entry for the reimbursement of the account is as follows:

    Delivery expenses A/c Dr. $58

    Merchandise inventory A/c Dr. $187

    Miscellaneous expenses A/c Dr. $27

    To Cash A/c $272

    (To record petty cash reimbursement)
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