Question

On December 29, 2019, Patel Products, Inc., sells a delivery van that cost $20,000. After recording the entry to bring the accumulated depreciation up-to-date, the delivery van had accumulated depreciation of $18,000. Patel received $2,000 cash from the purchaser of the delivery van. Complete the necessary Journal entry to record the sale by selecting the account names from the drop-down menus and entering the dollar amounts in the debit or credit columns Answer is complete but not entirely correct. No Date Credit Dec 29 General Journal Cash Accumulated depreciation Depreciation expense Delivery van Debit 2,000 18,000 500 20,000 < Prev 3 of 20 Next >

Answer 1

Step-by-step explanation:

The Journal entry to record the sale is given below :-

Cash Dr, $2,000

Accumulated Depreciation Dr, $18,000

To Delivery Van $20,000

(Being the sale of delivery van is recorded)

Since cash is received so the cash account is debited also accumulated depreciation is contra asset so it is also debited on the other hand the delivery van sold so it is credited.