Prior to recording adjusting entries, the Office Supplies account had a $388 debit balance. A physical count of the supplies showed $98 of unused supplies available. The required adjusting entry is:

Multiple Choice

• Debit Office Supplies $98 and credit Supplies Expense $290.

• Debit Office Supplies Expense $290 and credit Office Supplies $290.

• Debit Office Supplies Expense $98 and credit Office Supplies $98.

• Debit Office Supplies $290 and credit Office Supplies Expense $290.

• Debit Office Supplies $98 and credit Office Supplies Expense $98