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The City of Oldstown places a purchase order in the amount of $44,000 for a new police car. The car is received, but the city
The City of Oldstown places a purchase order in the amount of $44,000 for a new police car.
The car is received, but the city is billed only $43,000 for the car. Which of the following would
be recorded as part of the journal entry when the car is received?
a. An Encumbrances account would be credited for $44,000
b. An Expenditures account would be debited for $44,000
c. An Expenditures account would be credited for $43,000
d. An Encumbrances account would be credited for $43,000
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