Smucker's Company sold equipment costing $65,000 with $60,000 of accumulated depreciation for $10,000 cash. The company's journal entry to record this sale will NOT include a:

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The journal entry to record this sale will include a credit to Equipment for $65,000, a debit to Accumulated Depreciation for $60,000, and a credit to Cash for $10,000. However, there is no need to record a debit to Gain on Sale of Equipment for $5,000 because the difference between the selling price and the net book value of the asset (cost minus accumulated depreciation) represents the gain or loss on the sale, which is already accounted for by the credit to Cash and the debits to Equipment and Accumulated Depreciation.

Smucker's Company Sold Equipment Costing $65,000 with $60,000 of Accumulated