Question

pencer Co. has a $450 petty cash fund. At the end of the first month the accumulated receipts represent $68 for delivery expenses, $227 for merchandise inventory, and $37 for miscellaneous expenses. The fund has a balance of $118. The journal entry to record the reimbursement of the account includes a:

Answer 1

Answer:

Credit to cash for $332

Explanation:

The information above is broken down as;

Petty cash fund = $450

Accumulated receipts for delivery expenses = $68

Merchandise inventory = $227

Miscellaneous expenses = $37

Fund balance = $118

Hence;

The journal entry to record the reimbursement of the account is;

Delivery expenses account Dr. $68

Merchandise inventory account Dr $227

Miscellaneous expenses account Dr $37

To Cash account Cr $332

(Being the recording of cash reimbursement)