On December 31,Jacoby Company Received a $385 Bill for the Purchase

Multiple Choice

On December 31,Jacoby Company received a $385 bill for the purchase of supplies in December that it will not pay for until January 15.Jacoby follows a policy of recording all prepaid expenses to asset accounts at the time of cash payment.The adjusting entry needed on December 31 to accrue this cost is:

A) Debit Supplies $385; credit Accounts Payable $385.
B) Debit Accounts Payable $385; credit Supplies $385.
C) Debit Accounts Payable $385; credit Cash $385.
D) Debit Supplies Expense $385; credit Cash $385.
E) Debit Supplies Expense $385; credit Supplies $385.