Pharoah Company purchased office supplies costing $8680 and increase Supplies for the full amount. At the end of the accounting period, a physical count of office supplies revealed $3100 still on hand. The appropriate adjustment to be made at the end of the period would be:

increase Supplies Expense, $5580; decrease Supplies, $5580.

increase Supplies, $3100; decrease Supplies Expense, $3100.

increase Supplies Expense, $3100; decrease Supplies, $3100.

increase Supplies, $5580; decrease Supplies Expense, $5580.