On July 25,20X8,the City of Pullman,which Reports on a Calendar-Year

Multiple Choice

On July 25,20X8,the city of Pullman,which reports on a calendar-year basis,ordered five police cars at an estimated cost of $200,000.On August 26,20X8,the police cars were received,and the actual cost amounted to $197,000.Pullman encumbered the appropriation for police cars in its general fund when the cars were ordered.When the police cars were received,the general fund of Pullman should:

A) Credit Budgetary Fund Balance Assigned for Encumbrances for $197,000.
B) Debit Encumbrances for $200,000.
C) Debit Expenditures for $197,000.
D) Credit Budgetary Fund Balance Assigned for Expenditures for $200,000.