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The Latin Restaurant purchased $5,000 worth of laundry supplies on July 1 and recorded the purchase as an asset. On August 31, an inventory of

The Latin Restaurant purchased $5,000 worth of laundry supplies on July 1 and recorded the purchase as an asset. On August 31, an inventory of the laundry supplies indicated only $2,000 on hand. The adjusting entry that should be made by the hotel on July 30 is

Debit Laundry Supplies Expense, $2,000; Credit Laundry Supplies, $2,000.
Debit Laundry Supplies Expense, $3,000; Credit Laundry Supplies, $2,000.
Debit Laundry Supplies, $3,000; Credit Laundry Supplies Expense, $3,000.
Debit Laundry Supplies Expense, $3,000; Credit Laundry Supplies, $3,000.

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