Accounting for inventories (consumption method) Assume that a town purchases $4,000 of supplies on account toward the end of the year. A year-end audit reveals that $1,500 of the inventories remain unused. Prepare the journal entries for the purchase of inventories and the year-end adjusting entry assuming that the consumption method is used. General Journal Description Debit Credit Supplies purchase: Inventory-supplies Appropriations Year-end adjustment: Inventory--supplies Appropriations Expenditures Vouchers payable Inventory-supplies Fund balance-nonspendable Fund balance-unassigned