A truck costing $12,100, which has Accumulated Depreciation of $9,010, was sold for $2,010 cash. The entry to record this event would include a:

-loss of $1,080.

-gain of $1,080.

-credit to the Vehicles account for $3,090.

-credit to Accumulated Depreciation for $9,010.

Question

Business

Javier Cabrera

Today, 08:23

A truck costing $12,100, which has Accumulated Depreciation of $9,010, was sold for $2,010 cash. The entry to record this event would include a:

-loss of $1,080.

-gain of $1,080.

-credit to the Vehicles account for $3,090.

-credit to Accumulated Depreciation for $9,010.

+3

Answers (1)

Know the Answer?

Sheldon Sparks · Answer 1

Loss of $1,080

Explanation:

The correct journal entries would be:

Dr Accumulated Depreciation 9,010

Dr Cash 2,010

Dr Loss on sale 1,080

Cr Truck (Asset) 12,100

Thus, the correct answer is a loss of $1,080

A truck costing $12,100, which has Accumulated Depreciation of $9,010, was sold for $2,010 cash. The entry to record this event would include a:-loss of $1,080.-gain of $1,080.-credit to the Vehicles account for $3,090.-credit to Accumulated Depreciation for $9,010.

A truck costing $12,100, which has Accumulated Depreciation of $9,010, was sold for $2,010 cash. The entry to record this event would include a:

-loss of $1,080.

-gain of $1,080.

-credit to the Vehicles account for $3,090.

-credit to Accumulated Depreciation for $9,010.