Childers Company,which Uses a Perpetual Inventory System,has an Established Petty

Childers Company,which uses a perpetual inventory system,has an established petty cash fund in the amount of $400.The fund was last reimbursed on November 30.At the end of December,the fund contained the following petty cash receipts:
$$\begin{array} { | l | l | r | } \hline \text { December } 4 & \text { Freight charge for merchandise purchased } & \$ 62 \\\hline \text { December } 7 & \text { Delivery charge for shipping to customer } & \$ 46 \\\hline \text { December } 12 & \text { Purchase of office supplies } & \$ 30 \\\hline \text { December } 18 & \text { Donation to charitable organization } & \$ 51 \\\hline\end{array}$$
If,in addition to these receipts,the petty cash fund contains $201 of cash,the journal entry to reimburse the fund on December 31 will include:

A) A debit to Transportation-In of $62.
B) A debit to Petty Cash of $189.
C) A credit to Office Supplies of $30.
D) A credit to Cash Over and Short of $10.
E) A credit to Cash of $199.

Correct Answer:

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