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Problem 1: Childers Company, which uses a perpetual inventory system, has an established petty cash fund in the amount of $500. The fund was last reimbursed on November 30. At the end of December, the fund contained the following petty cash receipts: December 4 - Freight charge for merchandise purchased - $ 44 December 7 - Delivery charge for shipping to customer - $ 68 December 12 - Purchase of office supplies - $ 33 December 18 - Donation to charitable organization - $ 52 If, in addition to these receipts, the petty cash fund contains $292.50 of cash, the journal entry to reimburse the funds on December 31st will include
Option 1: A debit of petty cash of $77Option 2: A credit of office supplies of $68Option 3: A credit to cash over and short of $10.50Option 4: A credit cash of $207.50Option 5: A debit to transportation-in of $77.00
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