When supplies ordered by a governmental unit are received at an actual price which is less than the estimated price on the purchase order, the Encumbrance Control account is:

Question

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The journal entry would be a debit to Budgetary Fund Balance - Reserve for Encumbrances and a credit to Encumbrances Control for the amount of the encumbrance which is the amount on the purchase order. Expenditures Control would be debited and Accounts Payable would be credited for the invoice amount.

When Supplies Ordered by a Governmental Unit Are Received at an Actual