(Treatment of inventory-purchases method)
The General Fund of the City of Mineral Wells shows $40,000 in supplies inventory on January 1,2013.During the year 2013,General Fund cash is used to purchase $110,000 of supplies.On December 31,2013,the city conducts an inventory count and finds $50,000 of supplies inventory remains.Using the purchases method of accounting for inventory,prepare the journal entries necessary to record (a)the purchase of the inventory and (b)to make the year-end adjustment to inventory.

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The Answer of (Treatment of inventory-purchases method)
The General Fund of the City of Mineral Wells shows $40,000 in supplies inventory on January 1,2013.During the year 2013,General Fund cash is used to purchase $110,000 of supplies.On December 31,2013,the city conducts an inventory count and finds $50,000 of supplies inventory remains.Using the purchases method of accounting for inventory,prepare the journal entries necessary to record (a)the purchase of the inventory and (b)to make the year-end adjustment to inventory.

(Treatment of Inventory-Purchases Method)