Albany Co,Which Uses a Perpetual Inventory System,has a $400 Petty Cash

Multiple Choice

Albany Co.,which uses a perpetual inventory system,has a $400 petty cash fund.At the end of the first month,the accumulated receipts represent $60 for delivery expenses,$140 for incoming freight charges,$90 for entertainment expense,and $20 for miscellaneous expenses.The fund has a balance of $105.The journal entry to record the reimbursement of the account is:

A) Debit Petty Cash,$295; Credit Cash,$295.
B) Debit Merchandise Inventory,$200; Debit Entertainment Expense,$90; Debit Miscellaneous Expenses,$20; Credit Cash,$295; Credit Cash Over and Short,$15.
C) Debit Merchandise Inventory,$140; Debit Delivery Expense,$60; Debit Entertainment Expense,$90; Debit Miscellaneous Expenses,$20; Credit Cash,$295; Credit Cash Over and Short,$15.
D) Debit Merchandise Inventory,$140; Debit Delivery Expense,$60; Debit Entertainment Expense,$90; Debit Miscellaneous Expenses,$20; Credit Cash,$310.
E) Debit Delivery Expense,$200; Debit Entertainment Expense,$90; Debit Miscellaneous Expenses,$20; Credit Cash,$295; Credit Cash Over and Short,$15.