On 11/12/x2, Mike Company purchased supplies of $60,000. On 12/31/x2, the physical count determined that $25,000 of supplies remain unused. What is the journal entry required on 12/31/x2? Select one:

a. Dr. Supply Expense 25,000 and Cr. Supplies-Asset 25,000. b. Dr. Supply Expense 35,000 and Cr. Supplies-Asset 35,000. c. Dr. Supplies Asset 60,000 and Cr. Equity 60,000 d. Dr. Supplies-Asset 35,000 and Cr. Cash 35,000.