A physical count of supplies on hand at the end of May for Masters, Inc. indicated $1,250 of supplies on hand. The general ledger balance before any adjustment is $2,100. What is the adjusting entry for office supplies that should be recorded on May 31?
A) Debit Supplies Expense $1,250 and credit Supplies $1,250.B) Debit Prepaid Supplies $850 and credit Supplied Expense $850.C) Debit Supplies Expense $1,250 and credit Supplies $2,100.D) Debit Supplies $1,250 and credit Cash $1,250.E) Debit Supplies Expense $850 and credit Supplies $850.