In February, X City ordered $550,000 of supplies. On March 17th it received all of the ordered supplies and an invoice of $551,000. Which of the following would be recorded upon receipt of the supplies and invoice? A) Debit Encumbrances Control for $550,000. B) Debit Encumbrances Control for $551,000. C) Debit Budgetary Fund Balance - - Reserve for Encumbrances for $550,000. D) Debit Budgetary Fund Balance - - Reserve for Encumbrances for $551,000.

Question

Business

Rachel Page

22 July, 08:28

In February, X City ordered $550,000 of supplies. On March 17th it received all of the ordered supplies and an invoice of $551,000. Which of the following would be recorded upon receipt of the supplies and invoice? A) Debit Encumbrances Control for $550,000. B) Debit Encumbrances Control for $551,000. C) Debit Budgetary Fund Balance - - Reserve for Encumbrances for $550,000. D) Debit Budgetary Fund Balance - - Reserve for Encumbrances for $551,000.

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Answers (1)

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Jared Mason · Answer 1

Answer:A) Debit Encumbrances Control for $550,000

Explanation:

A) Debit Encumbrances Control for $550,000

Encumbrance is a restriction that controls the usage of funds, Encumbrance prevents the organisation from overspending

when X city ordered supplies of $550 000 the city created an encumbrance control with an amount of 550 000. when the supplies are received expenditure on supplies will be limited to $550 000