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 Supplies account has a $480 debit balance to start the year. No supplies were purchased during the current year. A December 31 physical count shows $200 of supplies remaining. DR or CR? 480 Debit Supplies 480 Step 1: Determine what the current account balance equals. $ 2007 Step 2: Determine what the current account balance should equal $ 200 Credit 200 Credit Step 3: Record the December 31, adjusting entry to get from step 1 to step 2 Adjusting Entry Debit Supplies expense | Supplies 200 b. The Supplies account has an $1,250 debit balance to start the year. Supplies of $3,000 were purchased during the current year and debited to the Supplies account. A December 31 physical count shows $875 of Supplies remaining. DR or CR? 1.250 Debit Supplies 1.250 Step 1: Determine what the current account balance equals $ 875 Step 2: Determine what the current account balance should equal $ 875 Credit 875 Credit Step 3: Record the December 31, adjusting entry to get from step 1 to step 2. Adjusting Entry Debit Supplies expense Supplies - 875 c. The Supplies account has a $4,900 debit balance to start the year. During the current year, supplies of $11.200 were purchased and debited to the Supplies account. The inventory of supplies available at December 31 totaled $3,200.