During the First Year of Wilkinson Co

Multiple Choice

During the first year of Wilkinson Co.'s operations, all purchases were recorded as assets. Supplies in the amount of $25,800 were purchased. Actual year-end supplies amounted to $5,600. The adjusting entry for store supplies will

A) increase net income by $20,200.
B) increase expenses by $20,200.
C) decrease supplies by $5,600.
D) debit Accounts Payable for $5,600.