On October 1, 2024, Sage Hill Company establishes a petty cash fund by issuing a cheque for $250 to William Wood, the custodian of the petty cash fund. On October 31, 2024, William Wood submitted the following paid petty cash receipts for replenishment of the petty cash fund when there is $16 cash in the fund:

Freight in $32 Supplies expense $93 Entertainment of clients $68 Postage $32

Prepare the journal entries required to establish the petty cash fund on October 1 and the replenishment of the fund on October 31. The company uses a perpetual inventory system. 11