A company wants to decrease its $200 petty cash fund to $175. The entry to reduce the fund is:

A. Debit to Cash $25; credit Petty Cash $25.
B. Debit Petty Cash for $175; debit Cash Over and Short $25; credit Cash $200.
C. Debit Petty Cash $25; credit Cash $25.
D. Debit Cash Over and Short for $25; credit Petty Cash $25.
E. Debit Miscellaneous Expenses $25; credit Cash $25.


Answer: A

Business

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