A Federal Agency That Uses Commitment Accounting Makes a Commitment

A federal agency that uses commitment accounting makes a commitment for supplies in the amount of $40,000.When it places the purchase order,however,the cost of the supplies is only $38,000.How is the $2,000 difference accounted for in the budgetary accounts?

A) No budgetary entry is needed at this point in the budgetary accounting cycle.
B) Commitments is debited for $40,000,Allotments - realized resources is credited for $2,000,and Undelivered orders - obligations,unpaid is credited for $40,000.
C) Commitments is debited for $38,000 and Undelivered orders - unpaid is credited for $38,000.
D) Allotments - realized resources is debited for $2,000 and Commitments is credited for $2,000.