The GST rate is 10%, where applicable. Adjusting entries are prepared annually. In the first year of operation, WA Ltd. purchased office supplies totalling $6,000 (GST exclusive). The supplies purchased were recorded in the Supplies asset account when the purchases were made. At the end of the year, supplies left on hand totalled $1,000 (GST exclusive). The adjusting entry for supplies at the end of this first financial year includes which of the following?

The adjusting entry for supplies at the end of this first financial year includes which of the following?

A) Dr Supplies Expense 5,500 B) Dr GST Receivable 500 C) Cr GST Receivable 500 D) Cr Supplies 5,000