A government places an order for a particular item of equipment and encumbers $5,500. The item arrives
Question:
A government places an order for a particular item of equipment and encumbers $5,500. The item arrives accompanied by an invoice for $5,200. The entries that the government should make should include (but not necessarily be limited to):
a. A debit to expenditures for $5,200, a debit to fund balance for $300, and a credit to reserve for encumbrances for $5,500
b. A debit to expenditures for $5,200, a credit to encumbrances for $5,200, and a credit to accounts payable for $5,200
c. A debit to expenditures for $5,200, a credit to encumbrances for $5,500, and a credit to accounts payable for $5,200
d. A debit to expenditures for $5,200, a credit to reserve for encumbrances for $5,200, and a credit to accounts payable for $5,200
Managing Operations Across the Supply Chain
ISBN: 978-0078024030
2nd edition
Authors: Morgan Swink, Steven Melnyk, Bixby Cooper, Janet Hartley