The Josey Company purchased equipment for $21,000 on October 1. It is estimated that annual depreciation on the computer will be $7,000. If financial statements are to be prepared on December 31, the company should make the following adjusting entry:

A)debit Depreciation Expense, $7,000; credit Accumulated Depreciation, $7,000.

B) debit Depreciation Expense, $1,750; credit Accumulated Depreciation, $1,750.

C) debit Depreciation Expense, $14,000; credit Accumulated Depreciation, $14,000.

D) debit Equipment, $1,750; credit Accumulated Depreciation, $1,750.