An agency of the federal government uses commitment accounting. It previously had committed $100,000 for the purchase of materials. A purchase order is issued for the materials in the amount of $98,000. Prepare the budgetary journal entry that is necessary when the purchase order is issued.

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The Answer of An agency of the federal government uses commitment accounting. It previously had committed $100,000 for the purchase of materials. A purchase order is issued for the materials in the amount of $98,000. Prepare the budgetary journal entry that is necessary when the purchase order is issued.

An Agency of the Federal Government Uses Commitment Accounting