Electro acoustic guitar or acoustic guitar?

I'd agree. For 120 pounds, an Electric-acoustic would be a cheap one, unless you buy used. I personally don't like most A/E guitars. Even EQ'd, the piezo pick-ups usually have fizzy artifacts on the sound. The guitar tops are also made more thick, which muddies the acoustic tone. I'd suggest it's better to get a -'solid' top- acoustic guitar; then fit a (magnetic) soundhole pick-up in it later. The brands that have won 'best guitar under $250' in recent years are Alvarez and Washburn. Most under $200 don't sound/play that great. A 'Dreadnaught' (standard) shape acoustic is most flexible. I prefer the playability of the 'OM' or 'OO' smaller shape myself. For 'accesories', a hardshell guitar case is wise. You'll probably need a guitar tuner, strap, and picks, if you use them. Other first options are string clippers/wire cutter, string winder, extra strings, guitar stand and maybe a capo. I think most inexpensive used amps are fine.