In its first year, a company purchased $$10,000$ of supplies and recorded the purchase by debiting the supplies account. At the end of the year, the company had $$3,500$ of supplies on hand. If the company failed to make an adjusting entry for supplies, then:

Group of answer choices

stockholders$$ equity will be understated.

net income will be understated.

liabilities will be understated.

assets will be understated.

expense will be understated.