multiple choice question at the end of the month, brown co.s petty cash fund contains $4 in cash and…

multiple choice question at the end of the month, brown co.s petty cash fund contains $4 in cash and receipts for postage of $50 and delivery expenses of $46. it started out with $100 in the fund at the beginning of the month. brown co.s journal entry to replenish the fund would include which of the following? petty cash is debited for $96. petty cash is credited for $96. cash is credited for $96. cash is debited for $96.

multiple choice question at the end of the month, brown co.s petty cash fund contains $4 in cash and receipts for postage of $50 and delivery expenses of $46. it started out with $100 in the fund at the beginning of the month. brown co.s journal entry to replenish the fund would include which of the following? petty cash is debited for $96. petty cash is credited for $96. cash is credited for $96. cash is debited for $96.

Answer

Explanation:

Step1: Calculate amount to replenish

The petty - cash fund started with $100 and ended with $4 in cash. The total of expenses (postage and delivery) is $50 + $46=$96. So, the amount to replenish the fund is $96.

Step2: Understand journal - entry rules

When replenishing a petty - cash fund, the petty - cash account is not debited or credited (it is only adjusted when the fund amount is changed permanently). Cash is credited for the amount of the expenses to replenish the fund.

Answer:

Cash is credited for $96.