The policy at Wildhorse Co. is to expense all office supplies at the time of purchase. On the last day of the accounting period, there are$1190 of unused office supplies on hand and the balance of supplies expense is $3780. What should the accountant do to prepare accrual-basis financial statements?
A. Nothing, company policy says to expense supplies when purchased.
B. Debit Supplies Expense for $2590 and credit Supplies for $2590.
C. Debit Supplies and credit Supplies Expense for $1190.
D. Convince management to change its policy to avoid problems in the future.