A university that formally integrates the budget in the accounting system and uses encumbrance accounting orders some new computers that will cost approximately $20,000.To recognize this event the university should make which of the following entries?
A)Debit Expenditures $20,000; credit Encumbrances $20,000
B)Debit Encumbrances $20,000; credit Reserve for encumbrances $20,000
C)Debit Encumbrances $20,000; credit Accounts payable $20,000
D)No entry required when the order is placed.

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The Answer of A university that formally integrates the budget in the accounting system and uses encumbrance accounting orders some new computers that will cost approximately $20,000.To recognize this event the university should make which of the following entries?
A)Debit Expenditures $20,000; credit Encumbrances $20,000
B)Debit Encumbrances $20,000; credit Reserve for encumbrances $20,000
C)Debit Encumbrances $20,000; credit Accounts payable $20,000
D)No entry required when the order is placed.

A University That Formally Integrates the Budget in the Accounting