Final answer:
The journal entry to record the replenishment of a petty cash fund should include a credit to the Cash account for the total amount of cash and receipts being replenished, which in this case is $295. The correct answer is option (d) Cash, $120.
Step-by-step explanation:
The journal entry to record the replenishment of a petty cash fund would include credits to the following accounts:
- Petty Cash, $90: This entry is incorrect because the amount credited to the Petty Cash account should match the total amount of cash and receipts that are being replenished, which is $295 in this case.
- Petty Cash, $120: This entry is incorrect because the amount credited to the Petty Cash account should match the total amount of cash and receipts that are being replenished, which is $295 in this case.
- Cash, $115; Cash Over and Short, $5: This entry is incorrect because Cash Over and Short is used to record the difference between the actual cash on hand and the expected amount calculated based on the receipts. Since the question states that there is $180 in cash and $115 in receipts for disbursements, the expected amount is $295. Therefore, the correct entry would be to credit the Cash account for $295.
- Cash, $120: This entry is correct because the Cash account should be credited for the total amount of cash and receipts that are being replenished, which is $295 in this case.
Therefore, the correct answer is option (d) Cash, $120.