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Question - Jo's Place prepares monthly financial statements. On January 31, the balance in the supplies account was $ 1,600. During February $ 2,960 of supplies were purchased and debited to Supplies. What is the adjusting entry on February 28 to account for the supplies assuming a February 28 inventory showing that $ 1,300 of supplies were on hand?
a) DR Supplies expense 300 and CR Supplies 300
b) DR Supplies 300 and CR Supplies expense 300
c) DR Supplies 3260 and CR Cash 3,260
d) DR Supplies expense 3260 and CR Supplies 3260
e) Some other entry
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