The Supplies account has a trial balance of $3,136.A year-end inventory shows $1,734 worth of supplies left at the end of the year.The correct adjusting entry is:

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The Supplies account has a current balance of $3,136 but the year-end inventory shows that only $1,734 worth of supplies were actually used during the year. This means that the company still has $1,402 worth of supplies on hand that were not used yet. Therefore, to adjust the Supplies account balance and recognize the expense for the supplies used during the year, we need to debit Supplies Expense for $1,402 (the difference between the current balance and the year-end inventory) and credit Supplies for the same amount. This will decrease the Supplies account balance to its correct ending balance of $1,734 ($3,136 - $1,402).

The Supplies Account Has a Trial Balance of $3,136