Which account would be debited when the City of Corfu issued purchase orders for materials and supplies?

Question

Quizplus · Accepted Answer

When the City of Corfu issues purchase orders for materials and supplies, they are creating a commitment to pay for those items. This commitment is recorded as an encumbrance, and as such, the Encumbrances Control account is debited. The Expenditures account would be debited when the actual payment is made, but not at the time of issuing purchase orders. The Budgetary Fund Balance -- Reserve for Encumbrance is a contra account used to track the amount of appropriations that have been set aside for encumbrances, it would not be debited directly. The Materials and supplies expense account would not be debited until the materials and supplies are actually received and used.

Which Account Would Be Debited When the City of Corfu