At the end of the month, employees have made the following expenditures from the petty cash fund and with company-issued credit cards. None of these transactions has been recorded previously.

Supplies (petty cash) $ 50

Delivery (petty cash) $ 75

Advertising (credit card) $ 1,100

Equipment (credit card) $ 4,200

Accounting for these employee purchases would include a:

A) Credit to Cash for $125.

B) Debit to Accounts Payable for $5,300.

C) Credit to Cash for $1,225.

D) Credit to Accounts Payable for $5,425.

Answer: Credit to Cash for $125.