A certain federal agency placed an order for office supplies at an estimated cost of $14,400.Later in the same fiscal year these supplies were received at an actual cost of $14,800.Assume commitment accounting is not used by this agency.When the order is received the required journal entry (or entries)will affect the accounts shown in what net amounts?

Question

Quizplus · Accepted Answer

When commitment accounting is not used, the receipt of the supplies is recorded at the actual cost. The budgetary accounts are not affected by the receipt of the supplies. Therefore, the correct answer is C) Budgetary Accounts: $400; Proprietary Accounts: $14,800.

A Certain Federal Agency Placed an Order for Office Supplies