During Bruce Company's first year of operations, the company purchased $3,700 of supplies. At year-end, a physical count of the supplies on hand revealed that $1,525 of unused supplies were available for future use. How will the related adjusting entry affect the company's financial statements? Multiple Choice O Expenses will increase and assets will decrease by $2,175. Assets and expenses will both increase by $1,525. Expenses and assets will both increase by $2,175. The related adjusting entry has no effect on net income or the accounting equation.

During Bruce Company's first year of operations, the company purchased $3,700 of supplies. At year-end, o physical count of the supplles on hand revealed that $1,525 of unused supplies were available for future use. How will the related adjusting entry affect the company/s financial statements? Mutiple Choice Expenses wail incresse and assets will decrease by $2.175 Assets and expenses we both increase by $1,525. Expenses and assets wit both increase by $2.775. The related adjusting ontry has no effect on net income or the accounting equation