Question

Blues Music Center had the following petty cash transactions in March of the current year. March 5 Wrote a \(250 check, cashed it, and gave the proceeds and the petty cashbox to Jen Rouse, the petty cashier.

6 Paid \)12.50 COD shipping charges on merchandise purchased for resale, terms FOB shipping point. Blues uses the perpetual system to account for merchandise inventory.

11 Paid \(10.75 in delivery expense on merchandise sold to a customer, terms FOB destination.

12 Purchased office file folders for \)14.13 that are immediately used.

14 Reimbursed Bob Geldof, the manager, \(11.65 for office supplies purchased and used.

18 Purchased office printer paper for \)20.54 that is immediately used.

27 Paid \(45.10 COD shipping charges on merchandise purchased for resale, terms FOB shipping point.

28 Paid postage expense of \)18.

30 Reimbursed Geldof \(56.80 for mileage expense.

31 Cash of \)61.53 remained in the fund. Sorted the petty cash receipts by accounts affected and

exchanged them for a check to reimburse the fund for expenditures.

31 The petty cash fund amount is increased by \(50 to a total of \)300.

Required

2. Prepare a petty cash payment report for March with these categories: delivery expense, mileage expense, postage expense, merchandise inventory (for transportation-in), and office supplies expense. Sort the payments into the appropriate categories and total the expenses in each category.

Short answer

Answer

The total of the Petty cash payment report is $189.47.

Step-by-step solution

Step-by-Step SolutionStep 1: Introduction to topic

Petty Cash Payments Report: The petty cash report should incorporate the date, transaction details, the money added to the petty cash, the sum distributed, and a running balance. When the running balance amounts reach a level where we need to replenish it again with some money, a need arises to write a check to take the petty cash so that the balance reaches its first funded sum.

Petty Cash Report-

Blues Music Center Petty Cash Payments Report
Delivery expense
Mar. 11	Delivery of customer's merchandise		$10.75
Mileage expense
Mar. 30	Reimbursement for mileage		$56.80
Postage expense
Mar. 28	Purchased postage stamps		$18.00
Merchandise inventory (transportation-in)
Mar. 6	COD charges on purchases	$12.50
Mar. 27	COD charges on purchases	$45.10	$57.60
Office supplies expense
Mar. 12	Purchased file folders	$14.13
Mar. 14	Reimbursement for office supplies	$11.65
Mar. 18	Purchased printing paper	$20.54	$46.32
Total			$189.47