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Fargo company established a $250 petty cash fund on March 1 of this year. On March 22, the fund showed $155 in cash, and receipts
Fargo company established a $250 petty cash fund on March 1 of this year.
On March 22, the fund showed $155 in cash, and receipts for the following expenditures: $32 postage, $48 gasoline expenses, and $13 transportation-in. Fargo uses the perpetual system of accounting for merchandise inventories.
What would be the journal entry to replenish the fund on March 22?
Fargo Company | ||||
Item | Account Name | Post Ref | DEBIT | CREDIT |
1 | Petty Cash | $250 | ||
Cash | $250 | |||
2 | Miscellaneous Expense | $15 | ||
Various Expenses | $140 | |||
Cash | $155 | |||
3 | Postage Expense | $32 | ||
Gasoline Expense | $48 | |||
Cash Over & Short | $2 | |||
Merchandise Inventory | $13 | |||
Cash | $95 | |||
4 | Various Expenses | $95 | ||
Cash | $95 |
A. | Item # 3 is the correct journal entry | |
B. | Item # 4 is the correct journal entry | |
C. | Item # 1 is the correct journal entry | |
D. | Item # 2 is the correct journal entry |
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