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Tanzania [10]
3 years ago
8

In February, X City ordered $550,000 of supplies. On March 17th it received all of the ordered supplies and an invoice of $551,0

00. 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.
Business
1 answer:
Lemur [1.5K]3 years ago
8 0

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

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