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Palmona Co. establishes a $280 petty cash fund on January 1. On January 8, the fund shows $175 in cash along with receipts for the
Palmona Co. establishes a $280 petty cash fund on January 1. On January 8, the fund shows $175 in cash along with receipts for the following expenditures: postage, $44; transportation-in, $13; delivery expenses, $15; and miscellaneous expenses, $33. Palmona uses the perpetual system in accounting for merchandise inventory. |
Prepare journal entry to establish the fund on January 1, reimburse it on January 8, and reimburse the fund and increase it to $330 on January 8, assuming no entry in part 2. (Hint: Make two separate entries for part 3.) | |
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