After totaling the receipts in the petty cash box, Kelly Garrett Detective Agency spent $65 on Office Supplies and $145 on Auto Expense. The journal entry to record the reimbursement to the petty cash fund would include:a. a credit to Office Supplies for $65b. a credit to Cash for $210c. a credit to Petty Cash Fund for $210d. a debit to Petty Cash Fund for $210

Question

Business

Leila Goodwin

14 May, 08:23

After totaling the receipts in the petty cash box, Kelly Garrett Detective Agency spent $65 on Office Supplies and $145 on Auto Expense. The journal entry to record the reimbursement to the petty cash fund would include:a. a credit to Office Supplies for $65b. a credit to Cash for $210c. a credit to Petty Cash Fund for $210d. a debit to Petty Cash Fund for $210

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Answers (2)

Know the Answer?

Jamar Chung · Answer 1

The correct options are both B&D, a credit to cash of $210 and a debit to petty cash fund for $210

Explanation:

The amount spent is $210 ($145+$65), which is expected reimbursement to the petty cash fund account in order to bring the back to the float earlier set for petty cash expenses.

However, for every debit entry there would a corresponding credit, in other words an increase of cash in petty fund account would be debited and a corresponding credit is posted to cash account where the cash emanates from.

Mathew Long · Answer 2

d. a debit to Petty Cash Fund for $210

Explanation:

The cash reimbursement system of the petty cash fund operates in a manner such that the expenses incurred and paid from the petty cash fund is reimbursed to the petty cash so that the fund does not go below a minimum balance.

Total expense from petty cash

= $65 + $145

= $210

These amount would been credited to the petty cash fund and debited to the various expenses. Hence to reimburse the petty cash fund, a debit entry will be posted there for $210