20. Lake of Fire Company purchased supplies costing $7000 and debited Supplies for the full amount. At the end of the accounting period, a physical count of supplies revealed $5000 still on hand. The appropriate adjusting journal entry to be made at the end of the period would be: a. Debit Supplies Expense, $2000; Credit Supplies, $2000. b. Debit Supplies Expense, $5000; Credit Supplies, $5000. c. Debit Supplies, $5000; Credit Cash, $5000. d. Debit Supplies, $2000; Credit Cash, $2000. 21. At December 31, 2020, before any year-end adjustments, Murmur Company's Insurance Expense account had a balance of $2,000 and its Prepaid Insurance account had a balance of $4,000. It was determined that $1,500 of the Prepaid Insurance had expired. The adjusted balance for Insurance Expense for the year would be a. $1,500. b. $3,500 c. $4,000. d. $6,000