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algol13
3 years ago
14

A city ordered uniforms with an expected cost of $6,000 for policemen. This amount is encumbered.

Business
1 answer:
Stels [109]3 years ago
3 0

Answer:

Answer is a.

Explanation:

  • The first journal entry for encumbrances is:

Encumbrances                                 6,000

Encumbrances outstanding                          6,000

  • After the receipt of the invoice the journal entry should be:

Encumbrances outstanding            6,000

Encumbrances                                                6,000

Expenditures                                    5,900

Invoice                                                              5,900

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