During January 2014 General Fund supplies ordered in the previous fiscal year and encumbered at an estimated amount of $2,000 were received at an actual cost of $2,200.The entry to record this transaction will require a debit to

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The supplies were ordered in the previous fiscal year, meaning they were part of the 2013 budget. Therefore, the encumbrance was made in the 2013 fiscal year. However, the actual cost was incurred in the current fiscal year (2014). Therefore, the entry to record the transaction will require a debit to Expenditures-2014 in the amount of $200 (the difference between the encumbered amount and the actual cost). This will reduce the appropriation for 2014.

During January 2014 General Fund Supplies Ordered in the Previous