D. decrease net income by $1,000 Edecrease net income by $500 QUESTION 4 During the course of your examination of the financial statements of the Haley Sporting Goods Corporation for the year ended December 31, 2016, you discover the following: a. Net income reported on the 2016 income statement is $42,000 before reflecting any of the following items. b. On November 1, 2016, $6,000 was paid for rent on the company's office building. The payment covered the three-month period ending January 31, 2017. The entire amount was debited to rent expense and no adjusting entry was made for this item. c. During 2016, the company received a $5,000 cash advance from a customer for merchandise to be manufactured and d.Haleyborowed $30,000 from a local bank on September 1, 2016, Principal and interest at 10% will be paid on August 31, e. There were no supplies listed on the balance sheet under assets. However, you discover that supplies costing $1,200 were shipped in 2017. The $5,000 was credited to sales revenue. 2017. No accrual was made for interest. on hand at December 31. No entry was made for the cost of the merchandise. Determine the proper amount of the adjustment for supplies (point e), if needed. Select the answer below. A decrease net income by $1,200 B. increase net income by $1,200 C increase net income by $600 D.decrease net income by $600 O E.noadusting entry is required QUESTION 5 During the course af your examination of the financial staterments of the Haley Sporting Goods Corporation December 31, 2016, you discover the following