Crane company adjusted trial balance january 31, 2020 debit credit supplies $900 prepaid insurance 1,800 salaries and wages payable $ 700unearned service revenue 750 supplies expense 900 insurance expense 300 salaries and wages expense 2,600service revenue 3,400 if the amount in supplies expense is the january 31 adjusting entry, and $3,400 of supplies was purchased in january, what was the balance in supplies on january 1?

beginning supplies 1,600

Explanation:

With the following identity we will sovle for beginning supplies:

beginning + purchases = ending + expense

the left side are the input of supplies

and the right side are the output

we will plug into the formula and solve for beginning supplies

beg + 3,400 = 900 + 900

beg = 3,400 - 900 - 900 =  1,600

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answer; ///i believe that the correct answer is (a) it is the means by which a person earns money;