Question

Silver Co. has a $430 petty cash fund. At the end of the first month the accumulated receipts represent $66 for delivery expenses, $219 for merchandise inventory, and $35 for miscellaneous expenses. The fund has a balance of $110. The journal entry to record the reimbursement of the account includes a:

Answer 1

The correct answer is credit to cash by $320..

Step-by-step explanation:

According to the scenario, Journal entry of the given data are as follows:

Journal entry

Delivery expense A/c Dr $66

Merchandise inventory A/c Dr $219

Misc. Expense A/c Dr $35

To Cash A/c $320 ( $66 + $219 + $35)

(Being reimbursement of the account is recorded )

Hence, reimbursement of the account includes credit to cash by $320.