Jackson was founded on August 1, Year 1. On that same date, Jackson bought supplies for $6,000 cash. The untrained bookkeepers debited Supplies Expense and credited Cash both for $6,000.

Later in Year 1, Jackson bought $9,000 supplies on account debiting Supplies Expense and crediting Accounts Payable.

In Year 1 no other entries were made to Supplies Expense until December 31, when you make any correction that is appropriate. At December 31, Year 1, all of Jacksons employees failed to consider the $2,400 of Supplies on hand. You have discovered any mistakes that may have been made in determining Jacksons income for the period ended December 31, Year 1. Should Jacksons income be increased or decreased for the period ending December 31, Year 1, when correcting any mistakes that may have occurred related to Supplies as stated above?