Havermill Co. establishes a $380 petty cash fund on September 1. On September 30, the fund is replenished. The accumulated receipts on that date represent $86 for Office Supplies, $163 for merchandise inventory, and $35 for miscellaneous expenses. The fund has a balance of $96. On October 1, the accountant determines that the fund should be increased by $76. The journal entry to record the reimbursement of the fund on September 30 includes a:

Explanation:

Petty cash system is a form of policy that a company uses to administer cash for various miscellaneous needs , with the balance set at a fixed amount and reimbursed when exhausted and on monthly basis

Petty cash fund limit = 380

Petty cash balance as at September = 96

Petty cash reimbursement for the month = (opening balance - closing balance)

380 -96 = 284

The journal entry to record reimbursement as at September 30 =

Debit petty cash -284

Credit cash - 284.

Kindly note that the change in the petty cash balance  policy occurred on October 1 after September 31 .

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