Choice "D" is correct. The Encumbrances account is debited and Budgetary Control is credited when a purchase order is approved.Choice "a" is incorrect. When the budget is recorded, Estimated Revenues is debited, Appropriations is credited, and Budgetary Control is credited when estimated revenues are greater than appropriations.Choice "c" is incorrect. When goods are received, Budgetary Control is debited and Encumbrances is credited. In addition, Expenditures is debited and Vouchers Payable is credited.Choice "b" is incorrect. A voucher payable is recorded when goods are received (encumbrance entry is reversed):
| Debit (Dr) | Credit (Cr) |
|---|
| Expenditures | $ XXX | |
| Vouchers Payable | | $ XXX |
| Budgetary control | XXX | |
| Encumbrances | | XXX |
