The Khoo Music Society,a Not-For-Profit Organization Is Purchasing Musical Instruments

The Khoo Music Society,a not-for-profit organization is purchasing musical instruments to donate to some local schools.Khoo ordered the instruments on August 1,20X1 and requested the following delivery schedule:

Khoo uses an encumbrance system and has properly recorded the necessary journal entry at August 1,20X1.At November 15,20X1,which of the following accounts should be debited and which statement will be affected?

A) Encumbrance commitments / statement of operations
B) Encumbrances - instruments / statement of operations
C) Encumbrance commitments / statement of financial position
D) Encumbrances - instruments / statement of financial position