Organic Market, a grocery store, purchased supplies for $12,000 cash on July 1, 2017. As of December 31, 2017, $7,000 had been used and $5,000 of supplies had not been used. Organic Market prepares financial statements on an annual basis and has a December 31 year-end.
a. Record the journal entry on July 1, 2017. 

b. In order to prepare the annual financial statements, record the adjusting journal entry to reflect the amount of supplies used as of December 31, 2017. 

c. On January 1, 2018, how much supplies does Organic Market have?

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Dec. 31, 2017 July 1, 2017 May Jan. July Sept. Nov. Jan. Nov. Mar. Sept. May Mar. July Feb. Apr. Feb. Aug. Oct. Aug. Apr. Dec. Dec. June Oct. June 2018 2017 Supplies Used Supplies Not Used