Waterway Company purchased equipment for $7270 on December 1, 2022. It is estimated that annual depreciation on the equipment will be $1800. If financial statements are to be prepared on December 31, 2022 the company should make the following adjusting entry: Debit Depreciation Expense, $5470; Credit Accumulated Depreciation, $5470. O Debit Depreciation Expense, $1800; Credit Accumulated Depreciation, $1800. O Debit Depreciation Expense, $150; Credit Accumulated Depreciation, $150. O Debit Equipment, $7270; Credit Accumulated Depreciation, $7270.