Hello in this lecture, we’re going to record an adjusting entry related to supplies. Remember that adjusting entries are going to have their own set of rules, you want to keep them separate in your head. They are still journal entries, and they follow the journal entry rules. But if we know that we are dealing with adjusting entries, we can apply an additional set of rules to help us to understand what the journal entry will be. For example, the adjusting entries will all be at the end of the time period, the end of the month or the end of the year. And if we take a look at the supplies account, we also know that typical adjusting entries will always have an account in the balance sheet section in terms of the trial balance that’s going to be somewhere up above this owner’s capital account. So we look for an account on the trial balance related to this supplies. on the balance sheet we said how about supplies and we also note that the supplies, the adjusting entries will have an account below the equity section below the owner’s capital in the income statement, revenue and expenses.