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Use the Following Information Regarding Larson Company to Answer the Question

Question 80

Multiple Choice

Use the following information regarding Larson Company to answer the question below.
1) Established a petty cash fund in the amount of $250.
2) Reimbursed the petty cash fund given the following petty cash fund disbursements:
A.Payment for postage,$20.
B.Payment for supplies,$70.
3) Increased the petty cash fund to $300.
4) Cash over at the end of the first period was $5.
The entry to record the reimbursement of the petty cash fund would include a


A) credit to Postage Expense for $20.
B) debit to Petty Cash for $90.
C) credit to Cash for $85.
D) debit to cash for $5.

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