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During Bruce's company's first year of operations, the company purchased $2,300 of supplies. At year-end, a physical count of the supplies on hand revealed that
During Bruce's company's first year of operations, the company purchased $2,300 of supplies. At year-end, a physical count of the supplies on hand revealed that $825 of unused supplies were available for future use. How will the related adjusting enty affect the company's financial statements? A) expenses and assets will both increase by $1,475. B) The related adjusting entry has no effect on net income or the accounting equation C) assets and expenses will both increase by $825. D) Expenses will increase and assets will decreaase by $1,475.
A) expenses and assets will both increase by $1,475.
B) The related adjusting entry has no effect on net income or the accounting equation
C) assets and expenses will both increase by $825.
D) Expenses will increase and assets will decreaase by $1,475.
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