On July 1, Gilbert County bought computer equipment for use in the administrative offices of the County. The equipment has an estimated useful life of three years and salvage of $10,000. Gilbert County has a 6/30 fiscal year-end. Assuming that the County maintains its books and records in a manner that facilitates the preparation of fund financial statements, the $70,000 cost of this equipment would require which of the following entries?

Debit Expenditures $70,000; Credit Cash $70,000.

Debit Equipment $70,000; Credit Cash $70,000.

Debit Expenses $70,000; Credit Cash $70,000.

No entry in the City s governmental funds.