Assuming the company’s fiscal year begins January 1:



If the amount in Supplies Expense is the January 31 adjusting entry, and $620 of supplies was purchased in January, what was the balance in Supplies on January 1?

NOTE: *JAN 31 adjusted balances from trial balance(Supplies: 420)(Supplies Expense:710)*

I really have no clue how to do this. Help would be very appreciated, thanks.

Your ending account balance is $420 worth of supplies, so you have to add the $710 worth of supplies used and subtract out the $620 worth of supplies purchased to get the beginning Supplies account balance.