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During its fiscal year ended June 30, Essex Co. issued purchases orders totaling $6,000,000, which were properly charged to encumbrances at the time. Essex received
During its fiscal year ended June 30, Essex Co. issued purchases orders totaling $6,000,000, which were properly charged to encumbrances at the time. Essex received goods at the encumbered amounts totaling $5,500,000 before year-end. The remaining goods were not received until after year-end, there were no other outstanding orders at the end of its fiscal year. Essex paid $5,200,000 of the invoices received during the year. What is the balance of Essex's encumbrances outstanding account at June 30?
A. $0
B. $300,000
C. $800,000
D. $500,000
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