Asked by Katie Moules on May 04, 2024
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On May 1,a company established a $125 petty cash fund.On May 22,the petty cash fund contains $6 in cash and the following paid petty cash receipts: transportation-in on merchandise inventory $25; postage,$21; and office supplies,$66.Record the general journal entry to reimburse the fund.
Petty Cash Receipts
Petty cash receipts are documents that record small, immediate cash expenses incurred by a business, tracking the disbursement and replenishment of a petty cash fund.
Reimburse
To pay back money to someone which they have spent or lost.
Transportation-In
Costs associated with bringing raw materials to a manufacturing plant or storage location, typically classified as part of the inventory cost on the balance sheet.
- Acknowledge the value of a petty cash system and its administration.
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Learning Objectives
- Acknowledge the value of a petty cash system and its administration.
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