During a Company's First Year,the Asset Account,office Supplies,was Debited for $2,300

Question 49
Multiple Choice

During a company's first year,the asset account,Office Supplies,was debited for $2,300 for the purchases of supplies.At year-end,office supplies on hand were counted and determined to be $825.The proper adjusting entry crediting supplies and debiting supplies expense will A)increase expenses and decrease assets by $1,475. B)decrease assets and increase expenses by $825. C)increase expenses and increase assets by $1,475. D)have no effect on net income or the accounting equation.