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faltersainse [42]
4 years ago
14

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 Budgetary Fund Balance -- Reserve for Encumbrances for $551,000.
B. Debit Budgetary Fund Balance -- Reserve for Encumbrances for $550,000.
C. Debit Encumbrances Control for $551,000.
D. Debit Encumbrances Control for $550,000.
Business
1 answer:
Neporo4naja [7]4 years ago
4 0

Answer:

B. Debit Budgetary Fund Balance -- Reserve for Encumbrances for $550,000.

Explanation:

X City made an order for goods worth $550,000 and when the goods were received the invoice states $551,000. The company should indicate in the invoice the correct amount received and work with that.

Reserve for encumbrances is an account that contains funds that have been reserved for a particular purpose. In this case since the order was made in February, the funds of $550,000 would have been put in this account.

On receipt of the goods we debit Budgetary Fund Balance -- Reserve for Encumbrances for $550,000 (the correct value of goods received).

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<h3><u>Explanation:</u></h3>

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In the given scenario, Shay knows that she performed better and he prepares herself not to be angry in the meeting held by her supervisor. She prepares herself with the entire question that will be asked her by the supervisor and how she must react to those questions. Thus, Shay was trying to: resist being defensive.

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