It is determined that a computer's depreciation expense for the year is $3,500. The journal entry to record this will be:
A)debit Depreciation Expense - computer $3,500; credit Cash $3,500.
B)debit Accumulated Depreciation - computer $3,500; credit Cash $3,500.
C)debit Depreciation Expense - computer $3,500; credit Accumulated Depreciation, $3,500.
D)debit Cash $3,500; credit Depreciation Expense - computer $3,500.

Question

Quizplus · Accepted Answer

The journal entry to record depreciation is to debit Depreciation Expense - computer for the amount of $3,500 and credit Accumulated Depreciation, which is a contra asset account, also for $3,500. This reflects the decrease in the value of the computer over time and the accumulation of the total depreciation expenses incurred. Option A and D are incorrect because they do not involve Accumulated Depreciation, while option B is incorrect because it debits Accumulated Depreciation instead of Depreciation Expense - computer.

It Is Determined That a Computer's Depreciation Expense for the Year