The Beginning Balance in the Supplies Account Was $3 000

Multiple Choice

The beginning balance in the Supplies account was $3 000. Purchases of supplies during the year were $25 000. The business makes adjusting entries for supplies once a year. A count of supplies at year- end revealed that the ending balance in the Supplies account should be $1 500. What is the amount of the adjusting entry?

A) $25 000
B) $26 500
C) $3 000
D) $1 500