Use this information to answer the following question. The trial balance for Nowwick Company appears as follows:

-If the estimated depreciation for office equipment were $350,the adjusting entry would contain a
A)debit to Accumulated Depreciation-Office Equipment for $350.
B)credit to Office Equipment for $350.
C)credit to Accumulated Depreciation-Office Equipment for $350.
D)credit to Depreciation Expense-Office Equipment for $350.

Question

Use this information to answer the following question. The trial balance for Nowwick Company appears as follows:

-If the estimated depreciation for office equipment were $350,the adjusting entry would contain a
A)debit to Accumulated Depreciation-Office Equipment for $350. 
B)credit to Office Equipment for $350. 
C)credit to Accumulated Depreciation-Office Equipment for $350. 
D)credit to Depreciation Expense-Office Equipment for $350.

Quizplus · Accepted Answer

Depreciation is recorded by debiting Depreciation Expense and crediting Accumulated Depreciation. Accumulated Depreciation is a contra asset account that reduces the book value of the asset over time, reflecting its use and wear.

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