A business records $1,000 of supplies as an asset on 1 June. At month-end a physical count shows $900 of supplies still on hand. What balance for Supplies appears on the statement of financial position at 30 June, and what Supplies Expense appears in profit or loss?

1. The count shows $\$900$ remaining, so the asset is reported at $\$900$. 2. Amount used $= 1{,}000 - 900 = 100$, so Supplies Expense is $\$100$. 3. Therefore A is correct. 4. B swaps used and remaining; C ignores the adjustment; D mismatches the expense with the remaining asset. _Source: Jonick, Principles of Financial Accounting (CC BY-SA 4.0), §2.3.1 "Supplies—Deferred Expense", p.61_