In February, X City Ordered $550,000 of Supplies

Multiple Choice

In February, X City ordered $550,000 of supplies. On March 17^th it received all of the ordered supplies and an invoice of $551,000. Which of the following would be recorded upon receipt of the supplies and invoice?

A) Debit Encumbrances Control for $550,000.
B) Debit Encumbrances Control for $551,000.
C) Debit Budgetary Fund Balance -- Reserve for Encumbrances for $550,000.
D) Debit Budgetary Fund Balance -- Reserve for Encumbrances for $551,000.