A City Received Supplies That Had Been Previously Encumbered

Multiple Choice

A city received supplies that had been previously encumbered. The supplies were encumbered for $5,000 and had an actual cost of $4,900. To recognize this event the county should make which of the following entries?

A) Debit Reserve for encumbrances $5,000 and Supplies $4,900; Credit Encumbrances $5,000 and Vouchers payable $4,900.
B) Debit Encumbrances $5,000 and Supplies $4,900; Credit Reserve for encumbrances $5,000 and Vouchers payable $4,900.
C) Debit Reserve for encumbrances $4,900 and Supplies $4,900; Credit Encumbrances $4,900 and Vouchers payable $4,900.
D) Debit Encumbrances $4,900 and Supplies $4,900; Credit Reserve for encumbrances $4,900 and Vouchers payable $4,900.