Logan's Snowboards estimated depreciation for office equipment at $250.The adjusting entry to record the depreciation would include:
A)a debit to Accumulated Depreciation for $250.
B)a credit to Depreciation Expense for $250.
C)a credit to Accumulated Depreciation for $250.
D)a credit to Office Equipment for $250.

Question

Quizplus · Accepted Answer

The adjusting entry to record depreciation involves crediting the Accumulated Depreciation account and debiting the corresponding Asset account. This is because Accumulated Depreciation is a contra-asset account which is used to reduce the value of the asset and reflect its decreasing value over time due to wear and tear. Therefore, the correct answer is a credit to Accumulated Depreciation for $250.

Logan's Snowboards Estimated Depreciation for Office Equipment at $250