Spencer Co. has a $420 petty cash fund. At the end of the first month the accumulated receipts represent $65 for delivery expenses, $215 for merchandise inventory, and $34 for miscellaneous expenses. The fund has a balance of $106. The journal entry to record the reimbursement of the account includes a: Multiple Choice Debit to Petty Cash for $420. Debit to Cash Over and Short for $106. Credit to Cash for $314. Credit to Inventory for $215. Credit to Cash Over and Short for $106.

Credit to Cash for $314

Explanation:

The journal entry to record the reimbursement of the account is given below:

Delivery expenses A/c             Dr. $65

Merchandise inventory A/c      Dr. $215

Miscellaneous expenses A/c    Dr. $34

          To Cash A/c                                             $314

(Being the  reimbursement of the account is recorded)

Here the delivery expense, merchandise inventory and miscellaneous expense is debited as it increased the assets & expenses and credited the cash as it decreased the assets

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