Each year you sell 950 units of a product at a price of $899 each. The variable

Journal Entry

Dr. Freight Charges            $62

Dr. Delivery Charges          $46

Dr. office Supplies              $81

Dr. Cash short and over    $10

Cr. Cash                              $199

Explanation:

Petty cash is a small amount of fund which is kept in the business for day to day expenses. Cash is issued from this fund for daily small expense which is inappropriate to withdraw from the bank by check.

As cash is being reimburse against all the expenses, that should be debited as these accounts have debit nature and cash is paid and decreased in this transaction we need to credit the cash account to account for this impact on the cash.

Cash balance = $400 - $201 = $199