At March 1, Company B reported a balance in Supplies of $230. During March, the company purchased supplies for $1030 and consumed supplies of $880. If no adjustment is made for supplies:

Which is the correct answer.

a. stockholders' equity will be overstated by $880

b. expenses will be understated by $1,030

c. assets will be understated by $380

d. net income will be understated by $880