QS $3-6$ Prepaid $($deferred$)$ expenses adjustments

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$.$ Supplies. The Supplies account has a $$300$ debit balance to start the year. No supplies were purchased during the current year. A December $31$ physical count shows $$110$ of supplies remaining.

b$.$ Supplies. The Supplies account has an $$800$ debit balance to start the year. Supplies of $$2,100$ were purchased during the current year and debited to the Supplies account. A December $31$ physical count shows $$650$ of supplies remaining.

c$.$ Supplies. The Supplies account has a $$4,000$ debit balance to start the year. During the current year, supplies of $$9,400$ were purchased and debited to the Supplies account. The inventory of supplies available at December $31$ totaled $$2,660.$