Cara, Inc Purchased Supplies Costing $£ 2,500$ On January 1,2011 and Recorded the Transaction by Increasing Assets

Cara, Inc. purchased supplies costing $£ 2,500$ on January 1,2011 and recorded the transaction by increasing assets. At the end of the year $£ 1,300$ of the supplies are still on hand. How will the adjusting entry impact Cara, Inc.'s statement of financial position at December 31, 2011?

A) Decreased Assets $£ 1,300$ .
B) Increased Equity $£ 1,300$ .
C) Increased Liabilities $£ 1,200$ .
D) Decreased Assets $£ 1,200$ .