Ferguson Co. decides to establish a petty cash fund with a beginning balance of $300. The company decides that any purchase under $45 can be processed through petty cash instead of the voucher system. The journal entry to record establishing the account is:

A.) Debit Petty Cash $300 and credit Cash $300.

B.) Debit Cash $300 and credit Petty Cash Over and Short $300.

C.) Debit Cash $300 and credit Petty Cash $300.

D.) Debit Cash $300 and credit Cash Over and Short $300.

E.) Debit Petty Cash $300; credit Cash $255; and credit Cash Over and Short $45.