At the beginning of the year Al-Arab Company purchased supplies costing $500. A physical count of supplies at the end of the year, revealed that $400 dinar still on hand. The appropriate adjusting journal entry to be made at the end of the year would be:

		Debit Supplies Expense, $400; and Credit Supplies, $400.
		Debit Supplies Expense, $100; and Credit Supplies, $100.
		Debit Supplies, $400; and Credit Supplies Expense, $400.
		Debit Supplies, $100; and Credit Supplies Expense, $100.