Chapter 8 Practice Test B Petty Cash Transactions The Cat's Meow Company uses the perpetual system for accounting for merchandise inventory and had the following transactions during the month of October. Please note that journal entries for Petty Cash are only made when the petty cash is established, reimbursed/replenished or when the amount is changed. October 1 Established the petty cash fund for $600 October 2 Paid $200 cash for freight for merchandise inventory delivered to door. October 11 Reimbursed employee $55 for postage stamps purchased for the company. October 16 Paid $40 for computer paper for the company, C.O.D. October 23 Reimbursed employee for business mileage $25. October 29 Petty cash was counted and S275 remains in the fund. A check was written to replenish the fund to the original S600 amount. Due to security issues, the petty cash fund was reduced to $500. October 31 Record the journal entry to establish petty cash; record the journal entry to reimburse petty cash; and record the journal entry to decrease petty cash