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

The Number of Days' Sales Uncollected Is Calculated By

Multiple Choice

Correct Answer:VerifiedUnlock this answer nowGet Access to more Verified Answers free of chargeAccess For Free

Correct Answer:
Verified
Unlock this answer now
Get Access to more Verified Answers free of charge