QUESTION 11 2. The asset account, Supplies, has a balance of $700 on January 1, 2022. During January, $16,000 of supplies was purchased on account and the liability was appropriately recorded. A count of supplies at the end of January indicates a balance of $900. The company prepares monthly adjusting entries. What adjusting entry is necessary at January 31? Dr. Supplies Expense 16,200 Cr. Supplies 16,200 Dr. Supplies 16,000 Cr. Accounts Payable 16,000 Dr. Supplies Expense 16,000 Cr. Supplies 14,400 Cr. Accounts Payable 1,600 Dr. Supplies Expense 15,800 Cr. Supplies 15,800