To prepare financial statement for the first quarter, the company must record which of the following accounting adjustments?

1. Increase Supplies expense by $5,600 and decrease Supplies inventory by $5,600
2. Increase Supplies expense by $3,400 and decrease Supplies inventory by $3,400 ??? NOT SURE
3. Increase Supplies inventory by $5,600 and decrease Supplies expense by $5,600
4. Increase Supplies inventory by $3,400 and decrease Supplies expense by $3,400
5. None of the above