Question

1. Hasting Company replenished a $500 petty cash fund. The petty cash contained vouchers of $87 for postage, $173 for suppliers, $58 for gasoline, and cash on hand of $182. The journal entry to reflect replenishment would include:

a) A credit to Petty Cash for $318.

b) Debits to Expense of $318.

c) A debit to Cash for $318.

d) Credit to Cash for $182.

e) None of these.

2. DeVries uses an allowance method for recording uncollectible accounts. DeVries previously wrote off $1,000 of accounts receivable from Morris Corporation. However, Morris subsequently paid the full amount. The entry to record collection would include:

a) A credit to Cash for $1,000

b) None of these.

c) A credit to Uncollectible Accounts Expense for $1,000.

d) A debit to Uncollectible Accounts Expense for $1,000.

e) A credit to Allowance for Uncollectible Accounts for $1,000.

Answer 1

1)
Answer: (a) A credit to Petty Cash for $318.
Journal entry for replenishment:
Postage expenses	$87
Supplies Expenses	$173
Gasoline / Fuel expenses	$58
Cash on account ($500 (-) $182)		$318
2)
Allowance for uncollectible account is debited ,when amout is written off reducing the balance of Allowance for uncollcectible accounts. After the collection of this the same will be credited, credited to alloance for uncollectible account. fromgiven option, option (e) is correct i.e., A credit to allowance for uncollectible account for $1000.