a. A company makes an accrued expense adjustment for $350 and accrued revenue adjustment for $450. How much was net income understated prior to these entries? Explain. b. On January 1, ABSB company bought supplies of $4,000 in cash and recorded it in supplies asset account. However, a count at year end on 12/31/2021 showed that only $1,000 worth of supplies is left. Write an adjustment journal to recognize the supply expense used during the year 2021.