For each separate case below, follow the three-step process for adjusting the Supplies asset account at December 31. 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. Supplies: The Supplies account has a $300 debit balance to start the year. No supplies were purchased during the current year. A December 31 physical count shows $110 of supplies remaining. DR or CR? Supplies $ 300 Debit 300 Step 1: Determine what the current account balance equals. Step 2: Determine what the current account balance should equal. $ 110 Debit Step 3: Record the December 31 adjusting entry to get from step 1 to step 2. Adjusting Entry Debit Credit Supplies expense Supplies 110 b. Supplies: The Supplies account has an $800 debit balance to start the year. Supplies of $2,100 were purchased during the current year and debited to the Supplies account. A December 31 physical count shows $650 of supplies remaining. DR or CR? Supplies Step 1: Determine what the current account balance equals, $ 2,100 Debit 2,100 Step 2: Determine what the current account balance should equal $ 800 Debit 800 b. Supplies: The Supplies account has an $800 debit balance to start the year. Supplies of $2,100 were purchased during the current year and debited to the Supplies account. A December 31 physical count shows $650 of supplies remaining. DR or CR? Step 1: Determine what the current account balance equals. $ 2,100 Debit Supplies 2,100 Step 2: Determine what the current account balance should equal. $ 800 Debit 800 Step 3: Record the December 31 adjusting entry to get from step 1 to step 2. Adjusting Entry Debit Credit Supplies expense Supplies c. Supplies: The Supplies account has a $4,000 debit balance to start the year. During the current year, supplies of $9,400 were purchased and debited to the Supplies account. The inventory of supplies available at December 31 totaled $2,660. 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. Supplies