Reference no: EM132588863

On January 1st, 2010, "ABC" Company decided to establish a petty cash fund for $250 . On January 31, 2020, the custodian submitted the following paid petty cash receipts for replenishment of the petty cash fund when there is $79 cash in the fund:

Receipt------------------------------Amount

Freight-in----------------------------$40.00

Office Supplies---------------------$38.00

Entertainment of Clients---------$65.00

Postage Expense------------------$25.00

Instructions:

Based on the above given information, answer the following questions:

Question 1) The journal entry to replenish the petty cash will have a cash over and short on the _________ (Debit/Credit), with an amount of __________.

Question 2) The cash over and short must be presented as __________(Revenue/Expense) on the_______ (Statement of financial position/Retained earning statement/ Income statement).