Short Answer. Colgate Co. establishes a $200 petty cash fund on January 1. On January 8, the fund shows $38 in cash along with receipts for the following expenditures:

Postage	74
transportation-in	29
delivery expenses	16

Miscellaneous expenses	43
Total	162

Colgate Co. uses the perpetual system in accounting for merchandise inventory.

1.Prepare the journal entry to establish the fund on January

2.Prepare the journal entry to reimburse the fund on January 8.