Prepare the adjusting entries needed at December 31, 2022 based on the following information gathered on Collins Company. Assume no adjusting entries has ever been made.

The company purchased $3,000 office supplies during the year. It routinely debits supplies expense at the time of purchase. A count of supplies on December 31, 2022 indicates that supplies of $880 are on hand. The office supplies account had zero balance at 1/1/2022.

Can you help prepare the adjusting entry?