The Town Laundry Ltd $\$ 3,000$ ; Credit Supplies $\$ 3,000$

The Town Laundry Ltd. purchased $5,500 worth of laundry supplies on June 2 and recorded the purchase as an asset in the Supplies account. On June 30, a count 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 Supplies Expense, $\$ 3,000$ ; credit Supplies, $\$ 3,000$ .
B) debit Supplies Expense, $\$ 2,500$ ; credit Supplies, $\$ 2,500$ .
C) debit Supplies, $\$ 2,500$ ; cre dit Supplies Expense, $\$ 2,500$ .
D) debit Supplies, $\$ 3,000$ ; credit Supplies Expense, $\$ 3,000$ .