Speedy Clean Laundry purchased € 6,500 worth of laundry supplies on June 2 and recorded the purchase as an asset. On June 30, an inventory of the laundry supplies indicated only € 1,000 on hand. The adjusting entry that should be made by the company on June 30 is

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According to the question, the company purchased € 6,500 worth of laundry supplies and recorded it as an asset. This means that the company did not recognize any expense at the time of purchase. However, at the end of the month, the physical inventory showed that only € 1,000 worth of supplies were on hand. This means that € 5,500 worth of supplies have been used up or consumed during the month. 
Therefore, an adjusting entry needs to be made to recognize this expense. The correct entry would be to debit Supplies Expense for € 5,500 and credit Supplies for € 5,500. This entry will reduce the asset account (Supplies) and recognize the expense (Supplies Expense) for the amount consumed during the month.

Speedy Clean Laundry Purchased € 6,500 Worth of Laundry Supplies