Jackson Brothers established a petty cash fund of $200 at the beginning of the year, but it decides to reduce the amount in the fund to $130. Demonstrate the correct journal entry to reduce the amount in the account by choosing the correct action from those given below. Multiple choice question. Petty Cash is debited for $70 and cash is credited for $70. Cash is debited for $130 and Petty Cash is credited for $130. Cash is debited for $70 and Petty Cash is credited for $70. Petty Cash is credited for $130 and Miscellaneous Expense is debited for $130.