At March 1st, Marigold Corp. reported a balance in supplies of $160. During March, the company bought supplies for $740 and consumed supplies of $620. If no adjusting entry is made for supplies:

a.) Expenses will be understated by $740.

b.) Stockholders' equity will be overstated by $620.

c.) Assets will be understated by $280.

d.) Net income will be understated by $620.

Explain why.