Bichon Company Purchased Equipment for $6,720 on December 1, 2022

Bichon Company purchased equipment for $6,720 on December 1, 2022. It is estimated that annual depreciation on the equipment will be $1,680. If financial statements are to be prepared on December 31,2022, the company should make the following adjusting entry:

A) Debit Depreciation Expense, $1,680; Credit Accumulated Depreciation, $1,680.
B) Debit Depreciation Expense, $140; Credit Accumulated Depreciation, $140.
C) Debit Depreciation Expense, $5,040; Credit Accumulated Depreciation, $5,040.
D) Debit Equipment, $6,720; Credit Accumulated Depreciation, $7,200.