7. Of the $1,600 in supplies inventory was on hand at the beginning of the month, $400 remains at the end. What is the adjusting journal entry required at the end of the month?

a) Debit supplies expense and credit supplies inventory $1,200.

b) Debit supplies inventory and credit supplies expense $1,200.

c) None is needed, since accounting rules allow a deferral until the end of the fiscal period.

d) Debit supplies inventory and credit supplies expense $400.