multiple choice question\njackson brothers established a petty cash fund of $200 at the beginning of the…

multiple choice question\njackson brothers established a petty cash fund of $200 at the beginning of the year, but it decides to reduce the amount in the fund to $130. demonstrate the correct journal entry to reduce the amount in the account by choosing the correct action from those given below.\n\no cash is debited for $70 and petty cash is credited for $70.\no cash is debited for $130 and petty cash is credited for $130.\no petty cash is credited for $130 and miscellaneous expense is debited for $130.\no petty cash is debited for $70 and cash is credited for $70.

multiple choice question\njackson brothers established a petty cash fund of $200 at the beginning of the year, but it decides to reduce the amount in the fund to $130. demonstrate the correct journal entry to reduce the amount in the account by choosing the correct action from those given below.\n\no cash is debited for $70 and petty cash is credited for $70.\no cash is debited for $130 and petty cash is credited for $130.\no petty cash is credited for $130 and miscellaneous expense is debited for $130.\no petty cash is debited for $70 and cash is credited for $70.

Answer

Brief Explanations:

The petty - cash fund is being reduced from $200 to $130, a decrease of $70. To reduce the petty - cash balance, we credit Petty Cash, and since the cash is being returned to the main cash account, we debit Cash for the same amount.

Answer:

A. Cash is debited for $70 and Petty Cash is credited for $70.