Spencer Co. has a $290 petty cash fund. At the end of the first month the accumulated receipts represent $52 for delivery expenses, $163 for merchandise inventory, and $21 for miscellaneous expenses. The fund has a balance of $54. The journal entry to record the reimbursement of the account includes a:

A. Debit to Petty Cash for $290.

B. Debit to Cash Over and Short for $54.

C. Credit to Cash for $236.

D. Credit to Cash Over and Short for $54.

E. Credit to Inventory for $163.

Question

Ernesto

Business

24 July, 18:27

Spencer Co. has a $290 petty cash fund. At the end of the first month the accumulated receipts represent $52 for delivery expenses, $163 for merchandise inventory, and $21 for miscellaneous expenses. The fund has a balance of $54. The journal entry to record the reimbursement of the account includes a:

A. Debit to Petty Cash for $290.

B. Debit to Cash Over and Short for $54.

C. Credit to Cash for $236.

D. Credit to Cash Over and Short for $54.

E. Credit to Inventory for $163.

+4

Answers (1)

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Ashley Huffman · Answer 1

C

Explanation:

Petty cash = $290

Delivery Expenses - $52

Merchandise inventory - $163

Miscellaneous expenses - $ 21

Total petty cash expenses - $236

Petty fund balance - $54

Reimbursement = $236

Credit cash $236, Debit Petty fund $236