Karen Johnson, the accountant of Hoop Co. of Nelson, has appointed Jim Pool as the petty cash custodian. The following transactions occurred in November. 

2019 Nov. 

25 Cheque No. 441 was written and cashed to establish a $50 petty cash fund. 

26 Paid $8.50 delivery charge for goods purchased for resale.

28 Purchased office supplies for $12 from petty cash. 

29 Purchased postage stamps for $15 from petty cash. 

On December 3, Jim received the following internal memo: 

To: Jim Pool 

From: Karen Johnson 

Re: Petty Cash 

Jim, I’ll need $5 for postage stamps. By the way, I noticed that our petty cash account seems to be too low. Increase its size to $100 please. 

Help Jim replenish petty cash on December 3 by providing him with a general journal entry. Support your answer and indicate whether Karen was correct.