Problem:
Shandi Company has a Supplies account balance of $5,000 on January 1, 2013. During 2013, it purchased $2,000 of supplies. As of December 31, 2013, a supplies inventory shows $800 of supplies available.
Required:
Question: Prepare the adjusting journal entry to correctly report the balance of the Supplies account and the Supplies Expense account as of December 31, 2013.
Note: Please provide full description.