$1,400 of supplies; $3,200 of supplies expenseExplanationSupplies = Amount on hand at end of year of $1,400 Supplies expense = Beginning balance of Supplies account of $1,400 of supplies on hand is the supplies asset on the balance sheet; $1,200 beginning balance + $3,400 of + Supplies purchased of $3,400 - Ending balance of Supplies account of $1,400 ending balance = $3,200