The Town Laundry purchased $5,500 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 $3,000 on hand.The adjusting entry that should be made by the company on June 30 is
A) debit Laundry Supplies Expense, $3,000; credit Laundry Supplies, $3,000.
B) debit Laundry Supplies Expense, $2,500; credit Laundry Supplies, $2,500.
C) debit Laundry Supplies, $2,500; credit Laundry Supplies Expense, $2,500.
D) debit Laundry Supplies, $3,000; credit Laundry Supplies Expense, $3,000.
Correct Answer:
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