A County Previously Encumbered $15,000 for the Acquisition of Supplies

question 12

Multiple Choice

A county previously encumbered $15,000 for the acquisition of supplies. The supplies were received at a total cost of $14,700. To recognize this event the county should make which of the following entries?

• A) Debit Reserve for encumbrances $15,000; Credit Encumbrances $15,000.
• B) Debit Reserve for encumbrances $14,700; Credit Encumbrances $14,700.
• C) Debit Encumbrances $15,000; Credit Reserve for encumbrances $15,000.
• D) Debit Encumbrances $14,700; Credit Reserve for encumbrances $14,700.