Adams and Adams, Inc. (AA), a law firm prepares ANNUAL financial statements at December 31 each year. The following questions relate to the adjusting entries recorded at December 31, 2018.

At January 1, 2018, AA had $500 of supplies. AA purchased $9,500 of supplies during 2018 and added them to the Office Supplies account. At the end of 2018, the supplies were counted and the amount still in the supply room was $1,200. The necessary adjusting entry will:

	A.	Decrease (credit) Office Supplies by $8,800
	B.	Decrease (credit) Office Supplies by $1,200
	C.	Increase (debit) Office Supplies by $1,200