Greese Company Purchased Office Supplies Costing $7,000 and Debited Supplies

Multiple Choice

Greese Company purchased office supplies costing $7,000 and debited Supplies for the full amount.At the end of the accounting period, a physical count of office supplies revealed $2,500 still on hand.The appropriate adjusting journal entry to be made at the end of the period would be:

A) debit Supplies Expense, $2,500; credit Supplies, $2,500.
B) debit Supplies, $4,500; credit Supplies Expense, $4,500.
C) debit Supplies Expense, $4,500; credit Supplies, $4,500.
D) debit Supplies, $2,500; credit Supplies Expense, $2,500.