What is the proper adjusting entry at December 31, the end of the fiscal year, based on supplies account balance before adjustment of $5,200, and supplies inventory on December 31 of $1,200? 1) Debit Supplies, $1,200; credit Supplies Expense, $1,200 2) Debit Supplies Expense, $1,200; credit Supplies, $1,200 3) Debit Supplies, $4,000; credit Supplies Expense, $4,000 4) Debit Supplies Expense, $4,000; credit Supplies $4,000 show work please