Blue Ridge Township uses the consumption method of accounting for its inventory of supplies.On the December 31,2007 balance sheet for the general fund,the township reported $10,000 of supplies inventory.During 2008,expenditures for supplies amounted to $40,000,and,at December 31,2008,unused supplies totalled $7,000.In the adjusting entry for supplies at December 31,2008,
A)Expenditures should be credited for $3,000.
B)Expenditures should be debited for $3,000.
C)Fund Balance-Reserved for Inventories should be debited for $7,000.
D)Fund Balance-Reserved for Inventories should be credited for $7,000.

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The Answer of Blue Ridge Township uses the consumption method of accounting for its inventory of supplies.On the December 31,2007 balance sheet for the general fund,the township reported $10,000 of supplies inventory.During 2008,expenditures for supplies amounted to $40,000,and,at December 31,2008,unused supplies totalled $7,000.In the adjusting entry for supplies at December 31,2008,
A)Expenditures should be credited for $3,000.
B)Expenditures should be debited for $3,000.
C)Fund Balance-Reserved for Inventories should be debited for $7,000.
D)Fund Balance-Reserved for Inventories should be credited for $7,000.

Blue Ridge Township Uses the Consumption Method of Accounting for Its