Jackson Discount Service Company Had a Balance of $7000 in Its

Jackson Discount Service Company had a balance of $7000 in its Supplies account and a zero balance in Supplies Expense at December 31 (prior to adjustment) .A physical count of the supplies at that date determined that supplies with a cost of $1300 were on hand.If the following tabular analysis is used Jackson Company will: $\begin{array}{llcc} \underline{\text { Assets } } &= & \underline{\text { Liabilities }} &+\underline{ \text { Stockholders' Equity} }\end{array}$

$\begin{array}{c}\begin{array}{l}\\\underline{\text { Supplies }}=\\\end{array}\begin{array}{c}\text {common}\\ \underline{\text {Stock}}\\\end{array}\begin{array}{l}\\\underline{\text {Revenue }} -\\\end{array}\begin{array}{lll}\\\underline{\text {Expense}} - \\\end{array}\begin{array}{lll}\\\underline{\text { Div. }}\\\end{array}\end{array}$

A) Increase the Supplies account balance by $1300
B) Increase the Supplies Expense account balance by $1300
C) Decrease the Supplies account balance by $5700
D) Decrease the Supplies Expense account balance by $5700