Sain Advertising Ltd.'s opening trial balance on January 1 shows Supplies $1,500. On May 1, the company purchased additional supplies for $4,800 on credit. On December 31, there are $2,300 of supplies on hand.

(a) Prepare the journal entry to record the purchase of supplies on May 1.

(b) Calculate the amount of supplies used during the year.

(c) Prepare the adjusting entry required at December 31.

(d) Using T accounts, enter the opening balances in the affected accounts, post the journal entries in (a) and (c), and indicate the adjusted balance in each account.