When Snowdrop City receives goods at a cost of $9,700 that were encumbered in the prior year for $10,000, which of the following entries are required (assume that encumbrances lapse at year end)? a. Debit Expenditures $9,700; Credit Accounts payable $9,700; no entry for Encumbrances. b. Debit Expenditures $9,700 and Reserve for encumbrances $10,000; Credit Accounts payable $9,700 and Encumbrances $10,000. c. Debit Expenditures $10,000 and Reserve for encumbrances $10,000; Credit Accounts payable $1