The City of Shiloh Sold a Used Police Car

The City of Shiloh sold a used police car.The police car, which had a historical cost of $17,000 and a fair value of $12,000, was sold for $5,000.Assuming that the City maintains its books and records in a manner to facilitate the preparation of the fund financial statements, what is the appropriate entry in the General Fund to record this sale?

A) Debit Cash $5,000; Credit Revenue $5,000.
B) Debit Cash $5,000 and Loss on Sale $7,000; Credit Automotive Equipment $12,000.
C) Debit Cash $5,000; Credit Other Financing Sources-Sale of Asset $5,000.
D) Debit Cash $5,000; Credit Automotive Equipment $5,000.