Ask Question
BusinessBusiness
27 September, 21:22

On April 30, Midwest Company established a petty cash fund of $1,000. On May 1, a disbursement of $355 was made from the fund for payment of delivery expense. What entry should be made on May 1 to record this disbursement?

+1
Answers (1)
  1. 27 September, 22:40
    0
    Answer: Debit Delivery expense $355; Credit Cash $355

    Explanation: Firstly, the disbursement was made from the petty cash account. This ultimately represents a cash account. Secondly, the disbursement was used for the payment of delivery expense to the tune f $355 (this is an operating expense). So the appropriate journals entries required to be recorded are as provided above. The disbursement is an outflow of cash and it was used for delivery expense.
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “On April 30, Midwest Company established a petty cash fund of $1,000. On May 1, a disbursement of $355 was made from the fund for payment ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers
You Might be Interested in
Tactical planning for management is performed by whom supervisors middle-level managers top executives operative employees
Answers (1)
The ownership of a corporation is represented by: a. shares of stock. b. the owner's capital account. c. the revenue account. d. cash in bank account.
Answers (1)
A country is currently producing bricks and spatulas using all of their resources and satisfying the wants of their economy. If the country has a change in preferences and wants more spatulas, which of the following is true? A.
Answers (1)
Steve's basis in his SAW Partnership interest is $200,000 at the beginning of the tax year, including all adjustments.
Answers (2)
Janice wants to get a mortgage for her new vacation condo. She pays $56,000 for the condo and has a 7% interest rate for a 7-year term. Under the terms of the mortgage, Janice pays interest only until the final payment when the principal is paid off.
Answers (1)
New Questions in Business
In the resource-based model of above-average returns, a capability is: a. an input into a firm's production process. b. the foundation for a firm's mission. c.
Answers (1)
Choose the correct statementA. Total revenue from the sale of a good equals the price of the good multiplied by the quantity sold. B. A rise in price increases total revenue. C. A rise in the price decreases total revenue. D.
Answers (1)
Which describes the purpose of minimum-balance fees? O make sure customers keep sufficient funds in their account collect funds for withdrawals from a competitor's machine pay for the costs of having bank employees penalize customers for writing
Answers (1)
Which event occurs in the large intestine?
Answers (1)
Providing for Doubtful Accounts At the end of the current year, the accounts receivable account has a debit balance of $1,835,000 and sales for the year total $25,690,000. The allowance account before adjustment has a debit balance of $12,500.
Answers (1)
Home » Business » On April 30, Midwest Company established a petty cash fund of $1,000. On May 1, a disbursement of $355 was made from the fund for payment of delivery expense. What entry should be made on May 1 to record this disbursement?
Sign Up Forgot Password?