Chapter 4, Problem 16.2EP

Goods for which a purchase order had been placed at an estimated cost of $1,600 were received at an actual cost of $1,550. The journal entry in the General Fund to record the receipt of the goods will include a

1. a.      Debit to Encumbrances Outstanding for $1,600.
2. b.      Credit to Vouchers Payable for $1,550.
3. c.       Debit to Expenditures for $1,550.
4. d.      All of the above are correct.