Childers Company, which uses a perpetual inventory system, has
an established petty cash fund in the amount of $400. The fund was
last reimbursed on November 30. At the end of December, the fund
contained the following petty cash receipts:
December 4 | Freight charge for merchandise purchased | $ | 62 |
December 7 | Delivery charge for shipping to customer | $ | 46 |
December 12 | Purchase of office supplies | $ | 30 |
December 18 | Donation to charitable organization | $ | 51 |
If, in addition to these receipts, the petty cash fund contains
$201 of cash, the journal entry to reimburse the fund on December
31 will include:
Multiple Choice
A debit to Transportation-In of $62.
A credit to Cash of $199.
A debit to Petty Cash of $189.
A credit to Cash Over and Short of $10.
A credit to Office Supplies of $30.
Correct Journal entry is
Merchandise Inventory..Debit $62
Delivery Expense..Debit $46
Office supplies..Debit $30
Miscellaneous expense..Debit $51
Cash short and over ..Debit $10
To Cash account.... Credit $199
Which is cash to be reimbursed is Minimum cash balance required - cash balance left
= $400 - $201 = $199
A credit to cash of $199 is the correct answer
Option 'B' is correct
Childers Company, which uses a perpetual inventory system, has an established petty cash fund in the...
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