e. On July 1, 2017, Lopez Company paid $3,000 for six months of insurane coverage. No adjustments have been made to the Prepaid Insurance account, and it is now December 31, 2017 b. Zim Company has a Supplies account balance of $8,600 on January 1, 2017 During 2017, it purchased $3,8d of supplies. As of December 31, 2017, a supplies inventory shows $1,700 of supplies available Prepare the journal entries to reflect expiration of the insurance and correctly report the balance of the Supplies account and the Supplies Expense account as of December 31, 2017 No Transaction Credit