Supplies were purchased on January 1 , to be used throughout the year, in the amount of $8,500. On December 31 , a physical count revealed that the remaining supplies totaled $1,200. There was no beginning of the year balance in the Supplies account. Based on the information provided: A. Create journal entries for the original transaction B. Create journal entries for the December 31 adjustment needed to bring the balances to correct C. Show the activity, with ending balance Prepare journal entries to record the following business transaction and related adjusting entry. A. January 12 , purchased supplies for cash, to be used all year, $3,850 B. December 31 , physical count of remaining supplies, $800