Current Attempt in Progress

The policy at Vaughn Manufacturing is to expense all office supplies at the time of purchase. On the last day of the accounting period, there are $$1120$ of unused office supplies on hand and the balance of supplies expense is $$3570.$ What should the accountant do to prepare accrual$-$basis financial statements?

Debit Supplies Expense for $$2450$ and credit Supplies for $$2450.$

Convince management to change its policy to avoid problems in the future.

Debit Supplies and cr$$dit Supplies Expense for $$1120.$

Nothing, company policy says to expense supplies when purchased.