The supplies account of Myer Ltd shows a balance of $2800 on 30 June 2021, the end of the financial year. Supplies of $2550 were used during the month of June 2021. Which of the following is correct after recording the adjustment on 30 June 2021?

Select one:

Supplies expense in the income statement is $2550 and Supplies in the balance sheet is $250.

Supplies expense in the income statement is $2800 and Supplies in the balance sheet is $0.

Supplies expense in the income statement is $0 and Supplies in the balance sheet is $2800.

Supplies expense in the income statement is $250 and Supplies in the balance sheet is $2550.