If a computer with a fully depreciated cost of $10 000 is discarded as worthless, the correct accounting entry to record the scrapping is:

Question

Quizplus · Accepted Answer

When an asset is fully depreciated and is being discarded, the proper accounting entry is to debit the Accumulated Depreciation account for the full cost of the asset (in this case, $10,000) and credit the Computer account for the same amount. This removes the asset from the books and recognizes the reduction in the asset's value over time through depreciation. Option A and C would be incorrect as they both include a debit to an expense account, which is not appropriate in this situation. Option D would only be used if the asset had some remaining value and was sold or traded in.

If a Computer with a Fully Depreciated Cost of $10