Final answer:
Expenditures for redemption of principal of tax-supported bonds payable should be recorded in a debt service fund. A debt service fund is a special fund used to account for the payment of principal and interest on long-term debt.
Step-by-step explanation:
Expenditures for redemption of principal of tax-supported bonds payable should be recorded in a debt service fund. A debt service fund is a special fund used to account for the payment of principal and interest on long-term debt. By recording these expenditures in a debt service fund, it allows for proper tracking and reporting of debt-related transactions.