Bonus question (10 points). The balance in the supplies account on June 1 was $5,200, supplies purchased during June were $3,500, and the supplies on hand at June 30 were $2,000. The amount to be used for the appropriate adjusting entry is a. $5,500. b. $3,500. c. $10,700. d. $6,700. Exercise 1 (85 points). Electro Company's trial balance at December 31, 2019 shows Supplies $7,500 and Supplies expense $0, On December 31, there are $4,000 of supplies on hand. Prepare the adjusting entry at December 31 and using the T-accounts, enter the balances in the accounts, post adjusting entry, and indicate the adjusted balance in each account. Exercise 2 (15 points) Please describe the purpose of adjusting entries. Why companies need to prepare adjusting entries and how often