Answer:
Option (b) is correct.
Explanation:
Given that,
During March, office supplies purchased on account = $5,000
On March 1, the balance in the supplies account = $350
On March 31, supplies on hand = $310
Therefore,
$310 should appear on the company's March 31 balance sheet as Supplies.
Company's March income statement as Supplies Expense:
= Supplies, as on March 1 + Purchases - Supplies, as on March 31
= $350 + $5,000 - $310
= $5,040
