Arnold's Asian Restaurant Company purchased office supplies costing $5,000 and debited Office Supplies for the full amount.At the end of the accounting period, a physical count of office supplies revealed $1,500 still on hand.The appropriate adjusting journal entry to be made at the end of the period would be
A) Debit Office Supplies Expense, $1,500; Credit Office Supplies, $1,500.
B) Debit Office Supplies, $3,500; Credit Office Supplies Expense, $3,500.
C) Debit Office Supplies Expense, $3,500; Credit Office Supplies, $3,500.
D) Debit Office Supplies, $1,500; Credit Office Supplies Expense, $1,500.
Correct Answer:
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