During its first three months of operations, Cari's Bakery, Inc. purchased supplies such as plates, napkins, bags, and cutlery for $7,200 and recorded this as supplies inventory. Supplies on hand at the end of the first quarter, amount to $4,480. To prepare financial statement for the first quarter, the company must record which of the following accounting adjustments? A) Increase Supplies expense by $2,720 and decrease Supplies inventory by $2,720 D) Increase Supplies inventory by $2,720 and decrease Supplies expense by $2,720 B) Increase Supplies expense by $4,480 and decrease Supplies inventory by $4,480 C) Increase Supplies inventory by $4,480 and decrease Supplies expense by $4,480