How does this entry affect the accounting equation? If a financial statement item is not affected, select "No Entry" and leave the amount box blank. If the effect on a financial statement item is negative, i.e, a decrease, be sure to enter the answer with a minus sign. Remember: if a contra account is increased, will have the effect of decreasing the corresponding financial statement item. b. The Office Supplies account had a balance of $3,960 on January 1,2017 . During 2017 , Palmer added $18,860 to the account for purchases of office supplies during the year. A count of the supplies on hand at the end of Dember 2017 indicates a balance of $1,980. How does this entry affect the accounting equation? If a financial statement item is not affected, select "No Entry" and leave the amount box blank. If the effect on a financial statement item is negative, i.e, a decrease, be sure to enter the answer with a minus sign