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 $440 debit balance to start the year. No supplies were purchased during the current year. A December 31 physical count shows $180 of supplies remaining. Supplies nces 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 b. The Supplies account has an $1,150 debit balance to start the year. Supplies of $2,800 were purchased during the current year and debited to the Supplies account. A December 31 physical count shows $825 of supplies remaining. Supplies Step 1: Determine what the current account balance equals. 3 of 13