Clarion Township was approved for a grant from the federal government. The grant provides for reimbursement up to $200,000 for expenditures incurred to weatherize homes for low-income persons. Upon notification that the grant had been approved, but before weatherization activities have begun, Clarion Township should:

Make no journal entry.

Debit Due from Federal Government for $200,000.

Credit Deferred Inflow of Resources for $200,000.

Both Debit due from Federal Government for $200,000 and Credit Deferred Inflow of Resources for $200,000.