A City Uses the Purchases Method of Accounting for Supplies

A city uses the purchases method of accounting for supplies in the General Fund.At year-end,the amount of supplies on hand is material and the city wants to report the inventory in its balance sheet.How should the General Fund record the inventory?

A) debit supplies inventory and credit expenditures--supplies used
B) debit supplies inventory and credit vouchers payable--supplies
C) debit supplies inventory and credit unassigned fund balance
D) debit supplies inventory and credit nonspendable fund balance