Final answer:
The sale of used machinery for cash would result in debiting the Cash account and crediting the Equipment account in the business's ledger, impacting the financial statements and cash flow.
Step-by-step explanation:
When a business records the sale of an asset such as used machinery for cash, two key accounts in the company’s financial ledger are affected: Cash and Equipment or Accumulated Depreciation. In this case, the business would debit Cash for the amount received, which is $24,500. The second part of the entry would involve crediting the Equipment account for the original cost of the machine and crediting or debiting other accounts such as Accumulated Depreciation or a Gain/Loss on Sale of Asset account, depending on whether the machine was sold at a gain or a loss relative to its book value. This transaction reflects cash flow and impacts the company’s financial statements, specifically the balance sheet and the statement of cash flows.