The City of Fulton uses the purchases method for recording its inventory of supplies in the General Fund. Rather than using a perpetual inventory system, inventories are updated at year-end based on a physical count. Physical inventories were $10,000 and $40,000 at December 31, 2020 and 2021, respectively. Purchase of inventory during 2021 was $100,000. The amount of Fund Balance---Nonspendable related to inventory reported on December 31, 2021 General Fund balance sheet will be: $40,000. $70,000. $100,000. $10,000.