Havermill Co. establishes a $250 petty cash fund on September 1. On September 30, the fund is reimbursed. The accumulated receipts on that date represent $73 for Office Supplies, $137 for merchandise inventory, and $22 for miscellaneous expenses. The fund has a balance of $18. On October 1, the accountant determines that the fund should be increased by $50. The journal entry to record the reimbursement of the fund on September 30 includes a:

credit to Cash for $18.

credit to Merchandise Inventory for $137.

credit to Cash for $250.

debit Petty Cash for $232.

debit to Office Supplies for $73.

Question

Raven Salas

Business

1 September, 00:48

Havermill Co. establishes a $250 petty cash fund on September 1. On September 30, the fund is reimbursed. The accumulated receipts on that date represent $73 for Office Supplies, $137 for merchandise inventory, and $22 for miscellaneous expenses. The fund has a balance of $18. On October 1, the accountant determines that the fund should be increased by $50. The journal entry to record the reimbursement of the fund on September 30 includes a:

credit to Cash for $18.

credit to Merchandise Inventory for $137.

credit to Cash for $250.

debit Petty Cash for $232.

debit to Office Supplies for $73.

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Answers (1)

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Quincy Jimenez · Answer 1

debit to Office Supplies for $73.

Explanation:

On September 30, the fund is reimbursed.

The accumulated receipts on that date represent $73 for Office Supplies, $137 for merchandise inventory,

and $22 for miscellaneous expenses.

The fund has a balance of $18.

The journal entry for the reimbursed petty cash will recognzie the uses for the cash and credit cash for the total amount:

office supplies 73 debit

merchadise inventory 137 debit

miscellaneous expenses 22 debit

Cash 232 credit

--to record the reimbursement of the petty cash fund--