On May 1, Year 2, Cole Company Paid $12,000 Cash

On May 1, Year 2, Cole Company paid $12,000 cash for supplies. The Year 2 adjusting entry to recognize the amount of supplies used during Year 2

A) increases the amount of supplies expense recognized in Year 2.
B) decreases the amount of liabilities shown on the Year 2 balance sheet.
C) increases the amount of liabilities shown on the Year 2 balance sheet.
D) decreases the amount of supplies expense recognized in Year 2.