A truck costing $56,000 has accumulated depreciation of $47,000. The truck is sold for $8,500. The journal entry to record this transaction is to:
A) debit Cash for $8,500, debit Accumulated Depreciation - Truck for $47,000, credit Truck for $56,000, and credit Gain on Disposal for $500.
B) debit Accumulated Depreciation - Truck for $47,000, and credit Truck for $47,000.
C) debit Cash for $8,500, debit Truck for $56,000, credit Accumulated Depreciation - Truck for $47,000 and credit Gain on Disposal for $17,500.
D) debit Cash for $500, debit Truck for $56,000, credit Accumulated Depreciation - Truck for $47,000, and credit Gain on Disposal for $8,500.
Correct Answer:
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