Assume no other adjusting entries are made during the year. a. Accumulated Depreciation: The Krug Company's Accumulated Depreciation account has a $16,000 balance to start the year. A review of depreciation schedules reveals that $17,600 of depreciation expense must be recorded for the year. Debit or Credit? Step 1: Determine what the current account balance equals. $ 16,000 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. Accumulated depreciation