The Kingsley places a purchase order in the amount of $54,000 for a new police car.

The car is received, but the city is billed only $53,000 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 $54,000

b. An Expenditures account would be debited for $54,000

c. An Expenditures account would be credited for $53,000

d. An Encumbrances account would be credited for $53,000