1. On April 1, ABC inc has a balance of $1500 in office supplies. During April, the company buys $2000 more of the office supplies. On April 30, the company counts the supplies and finds $900 of supplies remaining. The effect of the April 30 entry to adjust supplies will include a:

A) decrease to cash and an increase to supplies of $2600.

B)decrease to supplies and supplies expense of $2600.

C)decrease to supplies and supplies expense of $2000.

D)decrease to cash and an increase to account payable of $2000. E)increase to supplies and supplies expense of $2000

2. ABC Inc. purchased inventory in July. The inventory was sold to customers in August. ABC received the final cash payments from customers in September. According to the revenue-recognition principle, when should revenue be recorded?

A)August

B)September

C)July

D)both August and September