During January 2011 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 and therefore the expenditure should be recorded in the current fiscal year when the supplies were received. The actual cost exceeded the estimated amount by $200, so the transaction should be recorded with a debit to Expenditures-2011 in the amount of $200.

During January 2011 General Fund Supplies Ordered in the Previous