Assume the city of Troy uses the purchases method of accounting for inventory. Its general fund started the year with $1 million of inventory. During the year it purchased $12 million, and used $11 million. It still had $2 million on hand at the end of the year. Which of the following statements is correct about how it will report these events in its government fund reports? The general fund will report an expenditure for inventory of $12 million, and the balance sheet will show zero inventory. The general fund will report an expenditure for inventory of $12 million, and the balance sheet will show $2 million of inventory The general fund will report an expenditure for inventory of $11 million, and the balance sheet will show zero inventory. The general fund will report an expenditure for inventory of $11 million, and the balance sheet will show $2 million of inventory