During Bruce Company's first year of operations, the company purchased $4,200 of supplies. At year-end, a physical count of the supplies on hand revealed that $1775 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 $2.425 Assets and expenses will both increase by $1775 Expenses will increase and assets wil decrease by $2,425