32 t of estion Bichon Company purchased equipment for $6,720 on December 1. It is estimated that annual depreciation on the equipment will be $1,680. If financial statements are to be prepared on December 31, the company should make the following adjusting entry:. Select one: a. Debit Depreciation Expense, $1,680; Credit Accumulated Depreciation, $1,680. b. Debit Depreciation Expense, $5,040; Credit Accumulated Depreciation, $5,040 c. Debit Depreciation Expense, $140; Credit Accumulated Depreciation, $140. d. Debit Equipment, $6,720; Credit Accumulated Depreciation, $7,200