At the time a $450 petty cash fund is being replenished, the company's accountant finds vouchers totaling $350 and petty cash of $100. The vouchers include: postage, $90; business lunches, $135; delivery fees, $80; and office supplies, $45. Which of the following is not recorded when recognizing expenditures from the petty cash fund? a. Debit petty cash, $350b. Debit supplies, $45c. Debit postage expense, $90d. Credit petty cash, $350

Question

Business

Tobie

14 March, 23:52

At the time a $450 petty cash fund is being replenished, the company's accountant finds vouchers totaling $350 and petty cash of $100. The vouchers include: postage, $90; business lunches, $135; delivery fees, $80; and office supplies, $45. Which of the following is not recorded when recognizing expenditures from the petty cash fund? a. Debit petty cash, $350b. Debit supplies, $45c. Debit postage expense, $90d. Credit petty cash, $350

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Answers (1)

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Kolby · Answer 1

The entry that should not be recorded is debit petty cash, $300. Option A.

Explanation:

Vouchers recorded for expenses:

Postage

Business lunches

Delivery fees

Office supplies

The journal entry when recognizing expenditures from the petty cash fund should be as under:

Accounts : Credit Debit

Postage $ 90

Business lunches $ 135

Delivery fees $ 80

Office supplies $ 45

Petty Cash $350

The entry that should not be recorded is debit petty cash, $300