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.

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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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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