The "Supplies" asset account was debited $1,240 by the Sanford Company for office supplies purchased during the first year of operations. At year-end, the office supplies on hand were counted and the cost of the on-hand items was $880. The appropriate adjusting entry would:

Select one:

a.Have no effect on net income

b.Decrease expenses by $360

c.Decrease assets by $360

d.Increase expenses by $880

e.Increase assets by $880