On September $1,2024,$ ABC company purchases equipment for $$90,000.$ The equipment is expected to be used for the next four years, and have no residual value at the end of the four years. What adjusting entry should the company record on December $31,2024?$

Debit Depreciation Expense and credit Accumulated Depreciation for $$22,500$

Debit Depreciation Expense and credit Accumulated Depreciation for $$7,500$

Debit Equipment and credit Depreciation Expense for $$22,500$

Debit Equipment and credit Cash for $$90,000$