The Town of Pasco Has No Supplies Inventory in Its

Multiple Choice

The Town of Pasco has no supplies inventory in its general fund on January 1,20X8.During 20X8,Pasco incurred expenditures of $200,000 for the acquisition of supplies.On December 31,20X8,Pasco's inventory of supplies amounted to $30,000.Assume Pasco uses the purchase method of accounting for supplies in its general fund and that the village reports on the calendar year.On December 31,20X8,the general fund of Pasco should credit:

A) Expenditures for $170,000.
B) Fund Balance-Unassigned for $170,000.
C) Fund Balance-Nonspendable for $30,000.
D) Expenditures for $30,000.