During Bruce Company's first year of operations, the company purchased $3,300 of supplies. At year-end, a physical count of the supplies on hand revealed that $1,325 of unused supplies were available for future use. How will the related adjusting entry affect the company's financial statements? Multiple Choice Expenses will increase and assets will decrease by $1.976 Assets and expenses will both increase by $1,325 O Expenses and assets will both increase by $1.975 The related adjusting entry has no effect on net income of the accounting equation