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Question - During its fiscal year ended December 31, 2019, Colmar City issued a purchase order totaling $7,500,000, which were properly charged to encumbrances at the time. Colmar City's appropriations do not lapse. Colmar received goods and related invoices at the encumbered amounts totaling $7,200,000 before year-end. The remaining goods of $300,000 were not received until after year-end. Colmar paid $7,000,000 of the invoices received during the year. What amount of Colmar's encumbrances were outstanding at December 31, 2019?
a. $500,000
b. $7,500,000
c. $300,000
d. $7,200,000
e. $200,000
f. $0
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