A Company Wants to Decrease Its $200 Petty Cash Fund

A company wants to decrease its $200 petty cash fund to $175. The entry to reduce the fund is:

A) Debit to Cash $25; credit Petty Cash $25.
B) Debit Cash Over and Short for $25; credit Petty Cash $25.
C) Debit Petty Cash $25; credit Cash $25.
D) Debit Petty Cash for $175; debit Cash Over and Short $25; credit Cash $200.
E) Debit Miscellaneous Expenses $25; credit Cash $25.

Correct Answer:

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