For each separate case below, follow the three-step process for adjusting the Accumulated Depreciation account at December 3 Step 1: Determine what the current account balance equals. Step 2: Determine what the current account balance should equal. Step 3: Record the December 31 adjusting entry to get from step 1 to step 2. Assume no other adjusting entries are made during the year. a. The Krug Company's Accumulated Depreciation account has a $18,500 balance to start the year. A review of depreciation schedules reveals that $20,600 of depreciation expense must be recorded for the year. Debit or Credit? Accumulated depreciation Step 1: Determine what the current account balance equals. $ 18,500 Credit 18,500 Step 2: Determine what the current account balance should equal Credit Step 3: Record the December 31 adjusting entry to get from step 1 to step 2 Depreciation expense Accumulated depreciation b. The company has only one fixed asset truck that it nurhand at the b. The company has only one fixed asset (truck) that it purchased at the start of this year. That asset had cost $54,000, had an estimated life of 5 years, and is expected to have zero value at the end of the 5 years. Step 1: Determine what the current account balance equals. Accumulated depreciation -Truck 0 Step 2: Determine what the current account balance should equal. Step 3: Record the December 31 adjusting entry to get from step 1 to step 2. c. The company has only one fixed asset (equipment) that it purchased at the start of this year. That asset had cost $52,000, had an estimated life of 7 years, and is expected to be valued at $10,000 at the end of the 7 years, Step 1: Determine what the current account balance equals. Accumulated depreciation -Equipment Step 2: Determine what the current account balance should equal, Step 3: Record the December 31 adjusting entry to get from step 1 to step 2.