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.