A Company Wants to Decrease Its $200 Petty Cash Fund

Multiple Choice

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

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