Meng Co. establishes a $250 petty cash fund on January 1. On January 8, the fund shows $68 in cash along with receipts for the following expenditures: postage, $74; transportation-in, $29; and miscellaneous expenses, $59. Meng uses the perpetual system in accounting for merchandise inventory. The journal entry to establish the fund on January 1 is:

a. debit Cash $250; credit Petty Cash $250.

b. debit Petty Cash $250; credit Petty Cash Payable $250.

c. debit Miscellaneous Expenses $250; credit Petty Cash $250.

d. debit Petty Cash for $250; credit Cash $250.

e. debit Petty Cash $250; credit Miscellaneous Expenses $250.