Question

a company set-up a petty cash fund with \\$800. the disbursements are as follows:

office supplies: \\$300
shipping: 50
postage: 30
delivery expense: \\$350

answer the question below based on the above information.

to replenish the petty cash fund, the journal entry would include?

• debit petty cash and credit cash
• debit postage and credit cash
• credit cash and debit postage
• credit pretty cash and debit cash

question 5 (10 points)

a company received cash sales of \\$15000. they also collected \\$43000 in receivables during the month. answer questions 4 to 6 with this information.

1. what is the journal entry for the collection of the receivables?

• debit expense and credit cash
• credit expense and debit cash
• debit cash and credit accounts receivable
• debit account receivable and debit cash

Explanation:

Analyze the first question on petty cash replenishment

The first question asks about the journal entry required to replenish a petty cash fund.
Using the Petty Cash Fund and Journalizing Petty Cash knowledge points, when a petty cash fund is replenished, the individual expenses paid out of the fund are debited to their respective expense accounts, and the total amount needed to bring the fund back to its original balance is credited to the Cash account.
The disbursements listed are:

• Office Supplies: \$300
• Shipping: \$50
• Postage: \$30
• Delivery Expense: \$350

The journal entry to replenish this fund would be:

• Debit Office Supplies Expense \$300
• Debit Shipping Expense \$50
• Debit Postage Expense \$30
• Debit Delivery Expense \$350
• Credit Cash \$730

Looking at the options:

• "Debit petty cash and credit Cash" is incorrect because the Petty Cash account is only debited when the fund is established or increased.
• "Debit postage and credit cash" is correct because the entry indeed includes a debit to Postage (expense) and a credit to Cash.
• "Credit cash and debit postage" is equivalent in terms of accounts, but standard accounting convention lists debits first. However, looking at the choices, "Debit postage and credit cash" is the standard way to describe the debit/credit relationship.
• "Credit pretty cash and debit Cash" is incorrect.

Therefore, the correct option is "Debit postage and credit cash".

Analyze the second question on accounts receivable collection

The second question (Question 5) asks: "What is the journal entry for the collection of the receivables?"
The prompt states: "They also collected \$43000 in receivables during the month."
When a company collects cash from its outstanding accounts receivable:

• Cash (an asset) increases, which requires a debit to Cash.
• Accounts Receivable (an asset) decreases, which requires a credit to Accounts Receivable.

The journal entry is:

• Debit Cash \$43,000
• Credit Accounts Receivable \$43,000

Looking at the options:

• "Debit Expense and Credit Cash" is incorrect.
• "Credit Expense and Debit Cash" is incorrect.
• "Debit Cash and Credit Accounts Receivable" is correct.
• "Debit Account Receivable and Debit Cash" is incorrect.

Answer:

Question 1

• Debit petty cash and credit Cash
• Debit postage and credit cash (Correct answer)
• Credit cash and debit postage
• Credit pretty cash and debit Cash

Question 2

• Debit Expense and Credit Cash
• Credit Expense and Debit Cash
• Debit Cash and Credit Accounts Receivable (Correct answer)
• Debit Account Receivable and Debit Cash