Dreamtime Laundry purchased $7,000 worth of supplies on June 2 and recorded the purchase as an asset.On June 30, an inventory of the supplies indicated only $1,000 on hand.The adjusting entry that should be made by the company on June 30 is
A) Debit Supplies Expense, $1,000; Credit Supplies, $1,000.
B) Debit Supplies, $1,000; Credit Supplies Expense, $1,000.
C) Debit Supplies, $6,000; Credit Supplies Expense, $6,000.
D) Debit Supplies Expense, $6,000; Credit Supplies, $6,000.
Correct Answer:
Verified
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