Muldoon Advertising Has an Opening Balance in Its Supplies Account

Multiple Choice

Muldoon Advertising has an opening balance in its supplies account of $2,400 and purchases $3,000 of supplies during the year.A year-end physical count shows $2,800 in supplies inventory.Which is the appropriate journal entry at year end?

A) Dr Supplies Expense $2,600
Cr Supplies $2,600
B) Dr Supplies Expense $2,800
Cr Supplies $2,800
C) Dr Supplies $2,600
Cr Supplies Expense $2,600
D) Dr Supplies $3,000
Cr Cash $3,000