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. c. Supplies: The Supplies account has a $5,600 debit balance to start the year. During the current year, supplies of $12,600 were purchased and debited to the Supplies account. The inventory of supplies available at December 31 totaled $3,620. \begin{tabular}{|l|l|l|l|} \hline & & & \multicolumn{2}{|c|}{ Supplies } \\ \cline { 1 - 2 } & & & \\ \hline Step 1: Determine what the current account balance equals. & & & \\ \hline Step 2: Determine what the current account balance should equal. & & & \\ \hline & & & \\ \hline Step 3: Record the December 31 adjusting entry to get from step 1 to step 2. & & \\ \hline & & & \\ \hline & & & \\ \hline \end{tabular}