During Bruce Company's first year of operations, the company purchased $3,500 of supplies. At year-end, a physical count of the supplies on hand revealed that $1,425 of unused supplies were avaliable 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 $2,075 Assets and expenses will both increase by $1,425 Expenses and assets will both increase by $2.075 The related adjusting entry has no effect on net income or the accounting equation