Delta Company started Year 2 with a $1,700 in cash, $700 in supplies, and $2,400 in common stock accounts. During Year 2 the company experienced the following events.

(1) Paid $1,600 cash to purchase supplies. (2) Physical count revealed $400 of supplies on hand at the end of Year 2.

Based on this information the year-end adjusting entry to recognize supplies expense would cause

total assets to decrease by $400. total expenses to increase by $700. total stockholders' equity to decrease by $1,900. cash flow from operating activities to decrease by $1,100.