Havermill Co. establishes a $320 petty cash fund on September 1. On September 30, the fund is replenished. The accumulated receipts on that date represent $80 for Office Supplies, $151 for merchandise inventory, and $29 for miscellaneous expenses. The fund has a balance of $60. On October 1, the accountant determines that the fund should be increased by $64. The journal entry to record the reimbursement of the fund on September 30 includes a:
A. Credit to Cash for $60.
B. Debit to Office Supplies for $80.
C. Credit to Merchandise Inventory for $151.
D. Debit Petty Cash for $260.
E. Credit to Cash for $320.
Answer: B
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