Questions: The asset account, Supplies, had a beginning balance of 3,700. During the accounting period, supplies were purchased, on account, for 3,500. Supplies Expense for the accounting period is 4,900. What is the ending balance of Supplies? A. 7,200 B. 4,900 C. 2,300 D. 5,100

The answer is C: $2,300.

To determine the ending balance of the Supplies account, we need to follow these steps:

1. Start with the beginning balance of the Supplies account.
2. Add any supplies purchased during the period.
3. Subtract the Supplies Expense for the period.

Given:

• Beginning balance of Supplies: $3,700
• Supplies purchased during the period: $3,500
• Supplies Expense for the period: $4,900

Step-by-step calculation:

1. Beginning balance: $3,700
2. Add supplies purchased: $3,700 + $3,500 = $7,200
3. Subtract Supplies Expense: $7,200 - $4,900 = $2,300

Therefore, the ending balance of Supplies is $2,300.