Question

Assume a company has $250 in its petty cash fund. It expends $175 as follows: $100 for delivery expenses, $40 for postage, $35 for office supplies. There is $75 of cash remaining in the fund after these disbursements. The journal entry to replenish the petty cash fund includes:
A credit to Office Supplies expense for $35A credit to Cash for $175A credit to Cash for $250

Answer 1

Answer:

A credit to Cash for $175

Explanation:

Suplies expense              35

delivery expenses          100

miscellaneuos expense   40

                  cash                           175

The petty cash will receive 175 cash to restore their original value of 250

And the company will recognize the proper expenses.

The petty cash account is only used when creating, increasing or decreasing their founds.