For each separate case below, follow the three$-$step process for adjusting the Supplies asset account at December $31.$

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 $2.$

Assume no other adjusting entries are made during the year:

a$.$ The Supplies account has a $$400$ debit balance to start the year. No supplies were purchased during the current year. A December $31$ physical count shows $$160$ of supplies remaining.

$\backslash$table$[[,,,$DR or CR$?,$Supl$],[$Step $1$: Determine what the current account balance equals.,$$,4001,,$Debit,$400],[$Step $2$: Determine what the current account balance should equal.,$$,160,$Debit,$160],[$Step $3$: Record the December $31,$ adjusting entry to get from step,ep $2.,,,],[$Adjusting Entry,Debit,,Credit,$],[$Supplies$,,400,,],[$Supplies expense,,,,$]]$

b$.$ The Supplies account has an $$1,050$ debit balance to start the year. Supplies of $$2,600$ were purchased during the current year and debited to the Supplies account. A December $31$ physical count shows $$775$ of supplies remaining.

$\backslash$table$[[,,,],[$Step $1$: Determine what the current account balance equals.,,Debit,$],[$Step $2$: Determine what the current account balance should equal.,,,$],[,$Credit,,$],[$Step $3$: Record the December $31,$ adjusting entry to get from step $1$ to step $2.,,,],[,,,],[,,,]]$