Which of the following is the correct journal entry for the sale of a machine for $10,000 that had originally cost $25,000 and had $12,000 of accumulated depreciation on the date of sale?
A. Dr. Cash $\quad 10,000$
$\quad$Dr. Accumulated depreciation $\quad 12,000$
$\quad$Cr. Machine $\quad 22,000$
B. Dr. Cash $\quad 10,000$
$\quad$Dr. Accumulated depreciation $\quad 12,000$
$\quad$Dr. Loss on sale $\quad 3,000$
$\quad$$\quad$Cr. Machine $\quad 25,000$
C. Dr. Cash $\quad 10,000$
$\quad$Dr. Accumulated depreciation $\quad 12,000$
$\quad$Dr. Gain on sale $\quad 3,000$
$\quad$$\quad$Cr. Machine $\quad 25,000$
D. Dr. Cash $\quad 10,000$
$\quad$Dr. Loss on sale $\quad 15,000$
$\quad$$\quad$Cr. Machine $\quad 25,000$

Question

Which of the following is the correct journal entry for the sale of a machine for $10,000 that had originally cost $25,000 and had $12,000 of accumulated depreciation on the date of sale? 
A. Dr. Cash $\quad 10,000$
$\quad$Dr. Accumulated depreciation $\quad 12,000$
$\quad$Cr. Machine $\quad 22,000$
B. Dr. Cash $\quad 10,000$
$\quad$Dr. Accumulated depreciation $\quad 12,000$
$\quad$Dr. Loss on sale $\quad 3,000$
$\quad$$\quad$Cr. Machine $\quad 25,000$
C. Dr. Cash $\quad 10,000$
$\quad$Dr. Accumulated depreciation $\quad 12,000$
$\quad$Dr. Gain on sale $\quad 3,000$
$\quad$$\quad$Cr. Machine $\quad 25,000$
D. Dr. Cash $\quad 10,000$
$\quad$Dr. Loss on sale $\quad 15,000$
$\quad$$\quad$Cr. Machine $\quad 25,000$

Quizplus · Accepted Answer

Option B correctly reflects the removal of the machine's original cost ($25,000), the recognition of the accumulated depreciation ($12,000), and records the loss on sale ($3,000) since the machine sold for less than its book value.

Which of the Following Is the Correct Journal Entry for the Sale