During January 2017 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:

Question

Quizplus · Accepted Answer

The supplies were encumbered in the previous fiscal year, so the Encumbrances-2016 account would have been credited for $2,000 at that time. To record the actual cost of $2,200 in the current fiscal year, we would debit Expenditures-2017 for $200 (the difference between the encumbrance and the actual cost).

During January 2017 General Fund Supplies Ordered in the Previous