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10 December, 04:12

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

The uniforms are received with an invoice of $5,900. The entries to record the receipt of the

uniforms should include a credit to

a) Encumbrances of $6,000.

b) Encumbrances Outstanding of $6,000.

c) Encumbrances of $5,900.

d) Appropriations of $100.

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Answers (1)
  1. 10 December, 04:21
    0
    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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