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 $600 debit balance to start the year. No supplies were purchased during the current year. A December 31 physical count shows $260 of supplies remaining. Step 1: Determine what the current account balance equals. $ DR or CR? 600 Debit Supplies 600 + 260 Step 2: Determine what the current account balance should equal. $ 260 Debit 260 Step 3: Record the December 31, adjusting entry to get from step 1 to step 2. Supplies expense Supplies Adjusting Entry Debit Credit 260 260 b. The Supplies account has an $1,550 debit balance to start the year. Supplies of $3,600 were purchased during the current year and debited to the Supplies account. A December 31 physical count shows $1,025 of supplies remaining. b. The Supplies account has an $1,550 debit balance to start the year. Supplies of $3,600 were purchased during the current year and debited to the Supplies account. A December 31 physical count shows $1,025 of supplies remaining. DR or CR? Step 1: Determine what the current account balance equals. $ 3,950 Debit Supplies 3,950 3,125 Step 2: Determine what the current account balance should equal. $ 825 Debit 825 Step 3: Record the December 31, adjusting entry to get from step 1 to step 2. Supplies expense Supplies Adjusting Entry Debit Credit 3,125 + 3,125 c. The Supplies account has a $5,500 debit balance to start the year. During the current year, supplies of $12,400 were purchased and debited to the Supplies account. The inventory of supplies available at December 31 totaled $3,560. 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. Supplies c. The Supplies account has a $5,500 debit balance to start the year. During the current year, supplies of $12,400 were purchased and debited to the Supplies account. The inventory of supplies available at December 31 totaled $3,560. + 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. Supplies