On December 31 of the current year, Holmgren Company's bookkeeper made an entry debiting Supplies Expense and crediting Supplies on Hand for $12,600 . The Supplies on Hand account had a $15,300 debit balance on January 1 . The December 31 balance sheet showed Supplies on Hand of $11,400 . Only one purchase of supplies was made during the month, on account. The entry for that purchase was
a. debit Supplies on Hand, $8,700 and credit Cash, $8,700.
b. debit Supplies Expense, $8,700 and credit Accounts Payable, $8,700.
c. debit Supplies on Hand, $8,700 and credit Accounts Payable, $8,700.
d. debit Supplies on Hand, $16,500 and credit Accounts Payable, $16,500.
C
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