Question

A truck which had an original cost of $72,000 and accumulated depreciation of $11,000 was sold for $57,000. The journal entry to record the sale will include a

Answer 1

The journal entry to record the sale of a truck involves debiting Cash, crediting Accumulated Depreciation, Gain on Sale of Truck, and Truck.

Step-by-step explanation:

The journal entry to record the sale of the truck will include the following:

1. A debit to Cash for $57,000, as that is the amount received from the sale.
2. A credit to Accumulated Depreciation for $11,000, since this is the amount of depreciation that has been recorded on the truck up until the date of sale.
3. A credit to Gain on Sale of Truck for $4,000, which is the difference between the sale price ($57,000) and the net book value of the truck ($72,000 - $11,000 = $61,000).
4. A credit to Truck for $61,000, which represents the net book value of the truck at the time of sale.