The Concord Corporation purchased $6800 worth of laundry supplies on June 2 and recorded the purchase as an asset. On June 30, an inventory of the laundry supplies indicated only $1200 on hand. The adjustment that should be made by the company on June 30 is:

increase Supplies Expense, $1200; decrease Supplies, $1200.

increase Supplies, $5600; decrease Supplies Expense, $5600.

increase Supplies, $1200; decrease Supplies Expense, $1200.

increase Supplies Expense, $5600; decrease Supplies, $5600.

2. Relevant accounting information

must be reported within the operating cycle or one year, whichever is longer.

is information that is capable of making a difference in a business decision.

is information that has been audited.

has been objectively determined.