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 $2,000 on hand. the adjusting entry that should be made by the company on june 30 is

a. debit supplies expense, $2,000; credit supplies, $2,000.

b. debit supplies, $2,000; credit supplies expense, $2,000.

c. debit supplies, $5,000; credit supplies expense, $5,000.

d. debit supplies expense, $5,000; credit supplies, $5,000

The correct option is D.

Step-by-step explanation:

Given information:

On June 2 : Dreamtime Laundry purchased $7,000 worth of supplies.

On June 30 : An inventory of the supplies indicated only $2,000 on hand.

The adjusted amount is

To adjust the amount we need to debit Supplies Expense by $5000 and credit Supplies by $5,000.

So, the required adjusting entry that should be made by the company on June 30 is

Supplies Expense        $5,000

             Credit Supplies           $5,000

Therefore, the correct option is D.

Slope = -1/3x

Y-intercept = -1

Equation =

y = -1/3x - 1