If Invoices for Items Purchased Total $200,000,and Related Purchase Orders

Multiple Choice

If invoices for items purchased total $200,000,and related purchase orders total $185,000,which of the following is correct?

A) An encumbrance is debited for $200,000.
B) Budgetary Fund Balance -- Reserve for Encumbrances is credited for $200,000.
C) An expenditure is credited for $185,000.
D) A liability is credited for $200,000.