At the beginning of its fiscal year, the Town of Harmon estimates that its revenues for street maintenance activities are $100,000, and it appropriates $90,000 forstreet maintenance supplies. It currently has outstanding encumbrances for street maintenance supplies of $40,000 and has incurred expenditures for street maintenance supplies of $30,000. How much does the Town of Harmon currently have available to spend for street maintenance supplies

The amount that the Town of Harmon currently have available to spend for street maintenance supplies is $20,000.

Explanation:

From the question, we can obtain the following:

Amount appropriated for street maintenance supplies = $90,000

Outstanding encumbrances for street maintenance supplies = $40,000

Expenditures incurred for street maintenance supplies = $30,000

Therefore, we have:

Amount currently available to spend for street maintenance supplies = Amount appropriated for street maintenance supplies - Outstanding encumbrances for street maintenance supplies - Expenditures incurred for street maintenance supplies = $90,000 - $40,000 - $30,000 = $20,000

Therefore, the amount that the Town of Harmon currently have available to spend for street maintenance supplies is $20,000.

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