QS 3-6 (Algo) Prepaid (deferred) expenses adjustments LO P1 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: b. Supplies: The Supplies account has an $1,300 debit balance to start the year. Supplies of $3,100 were purchased during the current year and debited to the Supplies account, A December 31 physical count shows $900 of supplies remaining. c. Supplies: The Supplies account has a $5,000 debit balance to start the year. During the current year, supplies of $11,400 were purchased and debited to the Supplies account. The inventory of supplies available at December 31 totaled $3,260