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Home Q & A Board Other Fields Homework Help Business Accounting
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goji.go goji.go
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10 years ago
A federal agency that uses commitment accounting makes a commitment for supplies in the amount of $40,000. When it places the purchase order, however, the cost of the supplies is only $38,000. How is the $2,000 difference accounted for in the budgetary accounts?
      a.   No budgetary entry is needed at this point in the budgetary accounting cycle.
      b.   Commitments is debited for $40,000, Allotments – realized resources is credited for $2,000, and Undelivered orders – obligations, unpaid is credited for $40,000.
      c.   Commitments is debited for $38,000 and Undelivered orders – unpaid is credited for $38,000.
      d.   Allotments – realized resources is debited for $2,000 and Commitments is credited for $2,000.
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Diesel
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f_zah1f_zah1
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10 years ago
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goji.go Author
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#2
10 years ago
Thanks so much f_zah1.

You were correct Smiling Face with Open Mouth
Diesel
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#3
10 years ago
You're very welcome!
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