On April 30, Midwest Company established a petty cash fund of $1,000. On May 1, a disbursement of $355 was made from the fund for payment of delivery expense. The petty cash account has not been replenished. How would the disbursement affect the financial statements on May 1?

A. Delivery expense increases and cash decreases by $355

B. Petty cash increases and cash decreases by $355

C. Delivery expense increases and petty cash decreases by $355

D. The disbursement has no effect on the financial statements