Exercise 7-6 Petty cash fund LO4 Willard Company established a $400 petty cash fund on September 9, 2020. On September 30, the fund had $159.40 in cash along with receipts for these expenditures: transportation-in, $32.45; office supplies, $113.55; and repairs expense, $87.60. Willard uses the perpetual method to account for merchandise inventory. The petty cashier could not account for the $7.00 shortage in the fund. a. Prepare the September 9 entry to establish the fund. b. Prepare a summary of the petty cash payments similar to Exhibit 7.3 and record the entry on September 30 to reimburse the fund and reduce it to $300. Analysis Component: You are the senior marketing manager and are reviewing the unadjusted account balances for your division. You notice the $7.00 cash shortage recorded on September 30 regarding petty cash. The current petty cash custodian has been in place for three months. What should be done, if anything? Explain