The Charlton police department encumbered a police car on June 5 for $200,000. On June 29 the

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Question:

The Charlton police department encumbered a police car on June 5 for $200,000. On June 29 the police car was purchased and the actual invoice was for $192,000. The journal entry made on June 29 will debit?

Multiple Choice

Expenditure $200,000

Reserve for encumbrance $192,000

Reserve for Encumbrance $200,000

Encumbrance $198,000