The journal entry to record $300 of depreciation expense on factory equipment involves a

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DDepreciation expense on factory equipment is typically recorded by debiting the Manufacturing Overhead account, as it is a part of the overhead costs associated with production. The credit entry, instead of going directly to the asset account, often goes to Accumulated Depreciation, but since that option is not correctly presented, the closest correct treatment in this context is crediting the Manufacturing Overhead account, reflecting the allocation of depreciation expense to overhead costs.

The Journal Entry to Record $300 of Depreciation Expense on Factory