The following schedule shows the amounts related to supplies that a city debited and credited to the indicated accounts during a year (not necessarily the year-end balances), excluding closing entries. The organization records its budget, encumbers all of its expenditures, and initially vouchers all payments. It accounts for supplies on a purchases basis. A. Some information is missing. Determine the missing data by reconstructing the entries that the organization made during the year.. You need not show the entries; simply ll in the blanks. The city began the year with $5,000 of supplies in inventory and ended the year with $6,500. Debits Credits (in thousands) Cash $ 0 $ 70 Vouchers payable _ _ Appropriations 0 115 Encumbrances _ _ Expenditures 58 0 Reserve for encumbrances 58 93 Fund balance 0 Reserve for supplies inventory B. Assume instead that the city accounts for supplies on a consumption basis. 1. Which of the above amounts (assuming that appropriations remained unchanged) would be different? What would be the new value(s)? 2. When applying the consumption method, some governments either elect or are required to offset "supplies inventory" with "fund balance nonspendable\" rather than "fund balance unassigned." What is the rationale for such practice? C. The mayor of the city requests your advice as to whether it is actually necessary to (1) incorporate the budget into the accounting system and (2) use fund accounting. What is your response