When governmental accountants prepare a journal entry to reverse an encumbrance, they reverse the encumbrance for the invoice amount provided by the supplier.

Name: When governmental accountants prepare a journal entry to reverse an encumbrance, they reverse the encumbrance for the invoice amount provided by the supplier.
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A journal entry to reverse the encumbrance must be in the same amount as the amount originally encumbered; only an expenditure is recorded for the actual invoice amount.

When Governmental Accountants Prepare a Journal Entry to Reverse an Encumbrance