When supplies ordered for use in an activity accounted for in the General Fund are received at an actual price that is more than the estimated price on the purchase order, the Encumbrance account is:
A) Debited for the estimated price on the purchase order.
B) Credited for the estimated price on the purchase order.
C) Debited for the actual price for the supplies received.
D) Credited for the actual price for the supplies received.

Question

Quizplus · Accepted Answer

When supplies are received at a price higher than estimated, the Encumbrance account is credited for the estimated price to remove the encumbrance, reflecting that the obligation has been partially fulfilled.

When Supplies Ordered for Use in an Activity Accounted for in the General