During their first year, Smith and Associates bought $16,000 worth of supplies for their CPA firm. When purchased, the supplies were debited to Supplies and credited to Accounts Payable. What adjusting entry would Smith and Associates make if $4,000 worth of supplies were on hand at year-end?

A) Supplies 4,000 Supplies Expense 4,000
B) Supplies Expense 4,000 Supplies 4,000
C) Supplies 12,000 Supplies Expense 12,000
D) Supplies Expense 12,000 Supplies 12,000
E) None of the above

Ans: D) Supplies Expense 12,000 Supplies 12,000