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 expenditure related to inventory for year 2021 will be: $70,000. $10,000. $40,000. $100,000.