1. At the beginning of an accounting period, a company purchased $800 of supplies, by increasing Supplies and decreasing Cash. At the end of the accounting period, a physical count of supplies showed that only $100 of supplies were still on hand. The adjusting entry will require:

   		A Decrease in Supplies Expense for $700.
   		An Increase in Supplies Expense for $100.
   		An Increase in Supplies for $700.
   		A Decrease in Supplies for $700.