Doa Inc. is a Japanese firm located in Fukuoka. The firm purchased equipment for JPY 7,200,000 on December 1. The firm's accountant estimated that annual depreciation on the equipment would be JPY 1,800,000. If financial statements are to be prepared on December 31, the company should make the following adjusting entry:

a. Debit Equipment, JPY 7,200,000; Credit Accumulated Depreciation, JPY 7,200,000.

b. Debit Depreciation Expense, JPY 150,000; Credit Accumulated Depreciation, JPY 150,000.

c. Debit Depreciation Expense, JPY 5,400,000; Credit Accumulated Depreciation, JPY 5,400,000.

d. Debit Depreciation Expense, JPY 1,800,000; Credit Accumulated Depreciation, JPY 1,800,000.