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