Question

Spencer Co. has a $200 petty cash fund. At the end of the first month the accumulated receipts represent $43 for delivery expenses, $127 for merchandise inventory, and $12 for miscellaneous expenses. The fund has a balance of $18. The journal entry to record the reimbursement of the account includes a:_______.

a. Debit to Petty Cash for $200.
b. Debit to Cash Over and Short for $18
c. Credit to Cash for $182

Answer 1

CR to Cash for $182

Step-by-step explanation:

Based on the information given we were told that Spencer Co. has the amount of $200 as a petty cash fund and the fund as well has a balance of the amount of $18 this meas that the journal entry to record the reimbursement of the account includes a Credit to Cash for the amount of $182 calculated as:

CR to Cash for $182

($200-$18)