A city uses the consumption method of accounting for supplies in the General Fund. How should the General Fund record a purchase of supplies?
A) Debit Supplies inventory and credit Expenditures-supplies
B) Debit Supplies inventory and credit Vouchers payable
C) Debit Expenditures-supplies and credit Vouchers payable
D) Debit Supplies inventory and credit Nonspendable fund balance
Correct Answer:
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