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Problem 1: Pina Colada Corp. purchased office supplies costing $7700 and debited Supplies for the full amount. At the end of the accounting period, a physical count of office supplies revealed $2750 still on hand. The appropriate adjusting journal entry to be made at the end of the period would be:
A. debit Supplies Expense, $2750; credit Supplies, $2750.B. debit Supplies, $4950; credit Supplies Expense, $4950.C. debit Supplies Expense, $4950; credit Supplies, $4950.D. debit Supplies, $2750; credit Supplies Expense, $2750.
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