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cesarcastellan9
cesarcastellan9
07.07.2021 • 
Business

Carolina City places an order for a specific item of equipment and encumbers $6,000 for that item. The equipment arrives with an invoice for $5,700. Which of the following entries should the city make upon receipt of the equipment? a) A debit to expenditures for $5,700, a debit to accounts payable for $300, and a credit to encumbrances for $6,000.
b) A debit to expenditures for $5,700, a debit to reserve for encumbrances for $6,000, a credit to accounts payable for $5,700, and a credit to encumbrances for $6,000.
c) A debit to expenditures for $5,700, a debit to reserve for encumbrances for $300, and a credit to accounts payable for $6,000.
d) A debit to expenditures for $300, a debit to reserve for encumbrances for $5,700, and a credit to encumbrances for $6,000.

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