A company sold office furniture costing $15,800 with accumulated depreciation of $13,000 for $1,500 cash.The entry to record the sale would include:
A) an increase in accumulated depreciation for $15,800.
B) a loss for $1300.
C) a total decrease in office furniture for $2,800.
D) a decrease in cash for $1,300.

Question

Quizplus · Accepted Answer

The sale of the office furniture for $1,500 cash results in a loss of $13,000 (accumulated depreciation) - $1,500 (cash received) = $1,300. Therefore, the entry to record the sale would include a debit to cash for $1,500, a credit to office furniture for $15,800, a credit to accumulated depreciation for $13,000, and a debit to loss on sale of office furniture for $1,300.

A Company Sold Office Furniture Costing $15,800 with Accumulated Depreciation