Adjusting Entries Record the following adjusting entries and show how the following adjustments (that would be made on July 31, 2004, the end of the fiscal year) effect the accounting equation. The supplies inventory on August 1, 2003 was $6,730. Supplies costing $14,520 were acquired during the year and charged to the supplies inventory. A count on July 31, 2004 indicated supplies on hand of $7,400. On March 31, 2004, a ten-month, 9% note for $8,000 was received from a customer. On May 1, 2004, $4,080 was collected as rent for one year.