Patch Company sold some office furniture for $4,800 cash. The furniture cost $31,500 and had accumulated depreciation through the date of sale totaling $29,300. The journal entry to record the sale of the furniture will include a:

Question

Quizplus · Accepted Answer

The sale of the furniture resulted in a gain for the company because the sale price of $4,800 exceeded the book value of the asset ($31,500 - $29,300 = $2,200). The journal entry to record the sale would include a debit to Cash for $4,800, a credit to Accumulated Depreciation for $29,300, a debit to Furniture for $31,500, and a credit to Gain on Sale of Furniture for $2,600 ($4,800 - $2,200). Therefore, the correct answer is C, a credit to Gain on Sale of Furniture for $2,600.

Patch Company Sold Some Office Furniture for $4,800 Cash