19

Havermill Co. establishes a $390 petty cash fund on September 1. On September 30, the fund is replenished. The accumulated receipts on that date represent $87 for Office Supplies, $165 for merchandise inventory, and $36 for miscellaneous expenses. The fund has a balance of $102. On October 1, the accountant determines that the fund should be increased by $78. The journal entry to record the reimbursement of the fund on September 30 includes a:

Debit to Office Supplies for $87.

Credit to Merchandise Inventory for $165.

Credit to Cash for $390.

Debit Petty Cash for $288.

Credit to Cash for $102.