Use the Following Information to Answer Bellow Questions

Multiple Choice

Use the following information to answer bellow questions
A county's general fund has $4,000,000 in supplies on hand at the start of 2020. It purchases $25,000,000 in supplies and uses supplies costing $26,000,000 during 2020.
-If the county uses the purchases method to report supplies inventories, what balances appear in the general fund financial statements for 2020? Assume the supplies inventories are not material.

A) Expenditures of $26,000,000 and fund balance-nonspendable of $3,000,000
B) Expenditures of $25,000,000 and no nonspendable fund balance
C) Expenditures of $25,000,000 and fund balance-nonspendable of $3,000,000
D) Expenditures of $26,000,000 and no nonspendable fund balance