In February,X City ordered $500,000 of supplies.On March 17^th it received all of the ordered supplies and an invoice of $492,000.Which of the following would be recorded upon receipt of the supplies and invoice?

Question

Quizplus · Accepted Answer

Upon receipt of the supplies and invoice, the city would debit the Budgetary Fund Balance -- Reserve for Encumbrances for the original encumbered amount of $500,000, reflecting the commitment made when the order was placed.

In February,X City Ordered $500,000 of Supplies