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

a. credit to Equipment for $57,000.
b. credit to Loss on Disposal for $4,000.
c. debit to Loss on Disposal for $15,000
d. debit to Loss on Disposal for $4,000

Answer 1

The journal entry to record the sale of the truck will include option d. a debit to Loss on Disposal for $15,000.

Step-by-step explanation:

The journal entry to record the sale of the truck will include a debit to Loss on Disposal for $15,000.

This is because the truck was sold for $57,000, which is less than its original cost of $72,000. The difference between the sale price and the original cost is considered a loss on disposal.

So, the journal entry would be:

• Debit Loss on Disposal $15,000
• Credit Truck $72,000
• Credit Accumulated Depreciation $11,000
• Credit Cash $57,000