Morgan Company Used Supplies in the Amount of $2,000

Multiple Choice

Morgan Company used supplies in the amount of $2,000.Due to an error in posting to the general ledger,the supplies account was credited for only $200 while supplies expense was debited for $2,000.During which phase of the accounting cycle would this error be first discovered?

A) Analysis of the supplies purchase transaction.
B) Closing the books.
C) Preparation of the adjusted trial balance.
D) Preparation of the income statement.