Bay City uses the purchases method to account for supplies. At the beginning of the year the City had no supplies on hand. During the year the City purchased $600,000 of supplies for use by activities accounted for in the General Fund. The City used $400,000 of those supplies during the year. Assuming that the city maintains its books and records in a manner that facilitates the preparation of its fund financial statements, at fiscal year-end the appropriate account balances related to supplies expenditures and supplies inventory would be Expenditures $600,000; Supplies Inventory $200,000. Expenditures $600,000; Supplies Inventory $0. Expenditures $400,000; Supplies Inventory $200,000. Expenditures $400,000; Supplies Inventory $0.
Bay City uses the purchases method to account for supplies. At the beginning of the year the City had no supplies on hand. During the year the City purchased $600,000 of supplies for use by activities accounted for in the General Fund. The City used $400,000 of those supplies during the year. Assuming that the city maintains its books and records in a manner that facilitates the preparation of its fund financial statements, at fiscal year-end the appropriate account balances related to supplies expenditures and supplies inventory would be
Expenditures $600,000; Supplies Inventory $200,000.
Expenditures $600,000; Supplies Inventory $0.
Expenditures $400,000; Supplies Inventory $200,000.
Expenditures $400,000; Supplies Inventory $0.
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