ASB Ceramics Purchased Equipment Used in the Business Three Years

ASB Ceramics purchased equipment used in the business three years ago for $32,000.The accumulated depreciation account related to the equipment asset account had a balance of $15,000.The equipment had an estimated salvage (residual)value of $2,000 and had an estimated life of six years.A full year's depreciation was taken the first year.ASB uses the straight-line depreciation method.All depreciation is usually recorded at yearend.The company sold the equipment in exchange for a promissory note on July 1 of the current year for $13,000.Record the appropriate entries necessary.