The Kookie Kutter Bakery Purchased $6,500 Worth of Baking Supplies

Multiple Choice

The Kookie Kutter Bakery purchased $6,500 worth of baking supplies on June 2 and recorded the purchase as an asset. On June 30, an inventory of the baking supplies indicated only $3,000 on hand. The adjusting entry that should be made by the company on June 30 is

A) debit Baking Supplies Expense, $3,000; credit Baking Supplies, $3,000.
B) debit Baking Supplies Expense, $3,500; credit Baking Supplies, $3,000.
C) debit Baking Supplies, $3,500; credit Baking Supplies Expense, $3,500.
D) debit Baking Supplies Expense, $3,500; credit Baking Supplies, $3,500.