Inventory Journal Entrie A government with a beginning inventory of supplies of $100 in its General Fund and had the following transactions during the year ( all amounts are in thousands ) Transactions Ordered supplies with an estimated cost of $3 150 Receiveds upplies with an actual invoice cost of $ 2 920 . No payment was made upon receipt ; $2 950 was the encumbered amount . Paid $2 . 300 on account for supplies received in # 2 During the year the inventory warehouse issued $ 2 900 in supplies to general government departments The ending physical inventory of General Fund supplies found $150 on hand at year end Prepare the general journal entries required to account for the previous information a Purchases method b . Consumption Method ( perpetual inventory system is used )