Havermill Co

Havermill Co. establishes a $250 petty cash fund on September 1. On September 30, the fund is reimbursed. The accumulated receipts on that date represent $73 for Office Supplies, $137 for merchandise inventory, and $22 for miscellaneous expenses. The fund has a balance of $18. On October 1, the accountant determines that the fund should be increased by $50. The journal entry to record the establishment of the fund on September 1 is:

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