The Latin Restaurant purchased $5,000 worth of laundry supplies on July 2 and recorded the purchase as an asset.On June 30, an inventory of the laundry supplies indicated only $2,000 on hand.The adjusting entry that should be made by the hotel on July 30 is
A) Debit Laundry Supplies Expense, $2,000; Credit Laundry Supplies, $2,000.
B) Debit Laundry Supplies Expense, $3,000; Credit Laundry Supplies, $2,000.
C) Debit Laundry Supplies, $3,000; Credit Laundry Supplies Expense, $3,000.
D) Debit Laundry Supplies Expense, $3,000; Credit Laundry Supplies, $3,000.
Correct Answer:
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