The Supplies account has a trial balance of $3,136. A year-end inventory shows $1,734 worth of supplies left at the end of the year. The correct adjusting entry is:
A. debit Supplies Expense $1,402; credit Supplies $1,402
B. debit Supplies $1,402; credit Supplies Expense $1,402
C. debit Supplies Expense $3,136; credit Supplies $3,136
D. debit Supplies Expense $1,734; credit Prepaid Supplies $1,734
Answer: A
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