During Bruce Company's first year of operations, the company purchased $2.400 of supplies. At year-end, a physical count of the supplies on hand revealed that $875 of unused supplies were valable for future use How wil the related adjusting entry affect the company's financial statements? Maple Choice Expenses and setswil both create by $1525 The related adjusting entry has no effect on net income or the accounting equation Assets and expenses will both increase by 1875 Expenses will increase and assets will decrease by 51525