The City of Kent's police department needs a new police car.A police car is ordered at an estimated cost of $34,000 and the appropriate budgetary control journal entry is made.When the car is received,the actual cost is $35,000.Which of the following is a part of the budgetary entry that should be made when the police car is received?

Question

Quizplus · Accepted Answer

When the police car is received, the encumbrance for the estimated cost ($34,000) needs to be reversed. This is done by crediting encumbrances for $34,000, which removes the reservation of funds from the budget, reflecting that the purchase commitment has been fulfilled.

The City of Kent's Police Department Needs a New Police