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Morgan Company paid $400 for advertising brochures when it went into business on January 1. By January 31st, Morgan had given away one-fourth of these flyers. Which entry should Morgan make at January 31 to correctly state its accounts?A) Decrease cash by $100, and increase supplies expense by $100B) Decrease the asset account supplies by $100, and increase supplies expense by $100.C) Increase both the asset account supplies and the expense account supplies expense by $100.D) Make no entry to the asset accounts, and increase supplies expense by $100.
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