Waupaca Company establishes a $410 petty cash fund on September 9. On September 30, the fund shows $184

Waupaca Company establishes a $410 petty cash fund on September 9. On September 30, the fund shows $184 in cash along with receipts for the following expenditures: transportation-in, $46; postage expenses, $59; and miscellaneous expenses, $111. The petty cashier could not account for a $10 shortage in the fund. The company uses the perpetual system in accounting for merchandise inventory.

Prepare (1) the September 9 entry to establish the fund, (2) the September 30 entry to reimburse the fund, and (3) an October 1 entry to increase the fund to $455.

Explanation:

(2)	Merchandise Inventory: Transportation-in costs are included in Merchandise Inventory under a perpetual system.