Meng Co Establishes a $250 Petty Cash Fund on January 1

Meng Co. establishes a $250 petty cash fund on January 1. On January 8, the fund shows $68 in cash along with receipts for the following expenditures: postage, $74; transportation-in, $29; and miscellaneous expenses, $59. Meng uses the perpetual system in accounting for merchandise inventory. The journal entry to establish the fund on January 1 is:

A) Debit Cash $250; credit Petty Cash $250.
B) Debit Petty Cash $250; credit Petty Cash Payable $250.
C) Debit Miscellaneous Expenses $250; credit Petty Cash $250.
D) Debit Petty Cash for $250; credit Cash $250.
E) Debit Petty Cash $250; credit Miscellaneous Expenses $250.