Bardow, a township in Northern Vermont’s, fiscal year ends on June 30. Bardow us

Question

Bardow, a township in Northern Vermont’s, fiscal year ends on June 30. Bardow uses encumbrance accounting. On April 5, an approved $1,000 purchase order was issued for supplies. The township received these supplies on May 2, and the $1,0 00 invoice was approved for payment. What journal entry should Bardow make on April 5 to record the approved purchase order?

A. Memorandum entry only.

B. Dr. Encumbrances; Cr. Encumbrances Outstanding .

C. Dr. Supplies; Cr. Vouchers Payable.

D. Dr. Enc umbrances; Cr. Appropriations — Supplies.

Explanation / Answer

Generally there is no journal entry for recording approval of purchase order as it cannot be recognozed as revenue item

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