3. The Supplies Inventory account had a $4,500 balance at the beginning of the year (January 1, 2015). During the year, $6,000 of supplies were acquired, with the Supplies Expense account debited at the time of purchase. The supplies count at the end of the year (December 31, 2015) showed $5,000 of supplies is still on hand.

For each of the above numbered items, prepare the necessary adjusting journal entry. If no adjusting entry is required, explain why. Put the adjusting journal entries in the worksheet titled Part A Answers to Part A.

I know the answer is $500, but I wonder why the answer is $500.