On June 1,Stackable,Inc

Multiple Choice

On June 1,Stackable,Inc.has a balance of $6,000 in Supplies.During June,the company buys another $2,000 of supplies.On June 30,the company counts the supplies and finds that $800 are left unused.What is the proper adjustment at June 30?

A) Decrease Supplies and shareholders' equity by $7,200.
B) Decrease Supplies and shareholders' equity by $8,000.
C) Decrease Cash and increase Supplies by $2,000.
D) Decrease Cash and increase Accounts payable by $7,200.