Ritter Advertising Companys trial balance at December 31 shows Supplies $6,700 and Supplies Expense $0. On December

Question:

Ritter Advertising Company’s trial balance at December 31 shows Supplies $6,700 and Supplies Expense $0. On December 31, there are $2,500 of supplies on hand. Prepare the adjusting entry at December 31, and using T-accounts, enter the balances in the accounts, post the adjusting entry, and indicate the adjusted balance in each account.