If equipment that cost $120 000 and has accumulated depreciation of $70 000 is sold for $20 000,the journal entry to record the sale would include:

Question

Quizplus · Accepted Answer

The correct journal entry to record the sale of the equipment includes debiting (Dr) Accumulated Depreciation for $70,000 to remove the accumulated depreciation from the books. This reflects the total depreciation expense that has been recorded against the equipment up to the point of sale.

If Equipment That Cost $120 000 and Has Accumulated Depreciation