Furniture costing $10,000 with accumulated depreciation of $10,000 is discarded.How would the company record this transaction?
A)Debit Furniture Expense for $10,000 and credit Furniture for $10,000.
B)Debit Furniture for $10,000 and credit Accumulated Depreciation-Furniture for $10,000.
C)Debit Furniture Expense for $10,000 and credit Accumulated Depreciation-Furniture for $10,000.
D)Debit Accumulated Depreciation-Furniture for $10,000 and credit Furniture for $10,000.
E)Debit Loss on Disposal for $10,000 and credit Furniture for $10,000.

Question

Quizplus · Accepted Answer

When an asset is discarded, it is removed from the books by debiting Accumulated Depreciation-Furniture and crediting Furniture for the cost of the asset. Therefore, the correct journal entry is to debit Accumulated Depreciation-Furniture for $10,000 and credit Furniture for $10,000.

Furniture Costing $10,000 with Accumulated Depreciation of $10,000 Is Discarded