Prepare the adjusting entry for each of the following situations:
A. On May l, Unicover Services, Inc., had a $7,820 debit balance in its supplies account. During May, $4,250 of additional supplies were purchased. At the end of the month, a count of supplies revealed $2,430 left on hand.
B. Best Sports Enterprises, which produces a monthly magazine, received $9,600 in payments from its customers for two-year subscriptions. The subscriptions start with the June issue this year. The company prepares financial statements annually on December 31.