When a Firm Purchases Supplies for Use in Its Business $$\begin{array} { | l | l | } \hline \text { Dr. } & \text { Supplies } \\\hline \text { Cr. } & \text { Accounts payable } \\\hline\end{array}$$

Multiple Choice

When a firm purchases supplies for use in its business, and the cost of the supplies purchased is recorded as an asset, the following adjustment to recognize the cost of supplies used will probably be required:

A) $$\begin{array} { | l | l | } \hline \text { Dr. } & \text { Supplies } \\\hline \text { Cr. } & \text { Accounts payable } \\\hline\end{array}$$
B) $$\begin{array} { | l | l | } \hline \text { Dr. } & \text { Supplies } \\\hline \text { Cr. } & \text { Supplies expense } \\\hline\end{array}$$
C) $$\begin{array} { | l | l | } \hline \text { Dr. } & \text { Supplies expense } \\\hline \text { Cr. } & \text { Supplies } \\\hline\end{array}$$
D) No adjustment will probably be required.