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Question - Alpha began the year with $600 of supplies. During the year, Alpha recorded the only purchase of supplies as a debit to Supplies Expense for $2,000 and a credit to Cash for $2,000. At the end of the year, Alpha still had $1,400 of supplies remaining. What adjusting journal entry should Alpha record at the end of the year?
Debit Supplies Expense for $1,200 and credit Supplies for $1,200.
Debit Supplies for $1,200 and credit Supplies Expense for $1,200.
The correct answer is not listed.
Debit Supplies Expense for $800 and credit Supplies for $800.
Debit Supplies for $800 and credit Supplies Expense for $800.
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