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 the fund financial statements, at fiscal year-end the appropriate account balances related to supplies expenditures and supplies inventory would be

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abiolataiwo2015 abiolataiwo2015 · Answer 1 · 2020-06-30T03:56:49+02:00

Answer:

Supplies Expenditure $600,000

Supplies Inventory $200,000

Explanation:

Calculation for the appropriate account balances related to supplies expenditures and supplies inventory :

Supplies Expenditure will be $600,000 because during the year purchased of $600,000 supplies were made.

Therefore Supplies Expenditure will be $600,000

Supplies Inventory will be:

Purchased supplies $600,000

Less used supplies $400,000

Balance =$200,000

Therefore Supplies Inventory will be $200,000