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A city orders a new fire truck. A purchase order is placed for the fire truck in the amount of $225,000. The fire truck is
A city orders a new fire truck. A purchase order is placed for the fire truck in the amount of $225,000. The fire truck is received, but the actual cost of the truck was $228,000. The city receives the fire truck and approves a payment for $228,000. Which of the following is a part of the journal entry that should be made when the fire truck is received?
a. Debit Expenditures for $225,000
b. Debit Expenditures for $228,000
c. Debit Fire truck for $225,000
d. Debit Accounts payable for $225,000
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