Under the Consumption Method for Recording Supplies That Are Maintained

Multiple Choice

Under the consumption method for recording supplies that are maintained on a perpetual inventory system, the adjusting entry made at year end would affect which of the following accounts?

A) Fund Balance-Nonspendable-Inventory of Supplies.
B) Fund Balance-Restricted-Inventory of Supplies.
C) Expenditures.
D) Inventory of Supplies.