6 QS 3-6 Prepaid (deferred) expenses adjustments LO P1 For each separate case below, follow the three-step process for adjusting the supplies asset account at December 31. nts Step 1: Determine what the current account balance equals Step 2: Determine what the current account balance should equal. Step 3: Record the December 31 adjusting entry to get from step 1 to step 2. Skipped Assume no other adjusting entries are made during the year eBook a. The Supplies account has a $360 debit balance to start the year. No supplies were purchased during the current year. A December 31 physical count shows $140 of supplies remaining. Hint Supplies Step 1: Determine what the current account balance equals. Print Step 2: Determine what the current account balance should equal. eferences Step 3: Record the December 31, adjusting entry to get from step 1 to step 2 b. The Supplies account has an $950 debit balance to start the year. Supplies of $2,400 were purchased during the current year and debited to the Supplies account. A December 31 physical count shows $725 of supplies remaining. Supplies Step 1: Determine what the current account balance equals Step 2: Determine what the current account balance should equal. Step 3 Record the December 31, adjusting entry to get from step 1 to step 2