During a company's first year of operations, the asset account. Office Supplies, was debited for $2,700 for the purchases of supplies. At year-end, a physical count of the supplies on hand revealed that $1,025 of unused supplies were available for future use. How will the related adjusting entry affect the company's financial statements? Multiple Choice The related adjusting entry has no effect on net income or the accounting equation. Expenses and assets will both increase by $1.675 Assets and expenses will both increase by $1,025