Question

The original cost of the truck was $32,000. What would be the journal entry for Combs Co. to record the disposal of the delivery truck

Answer 1

Answer:

Journal Entry for disposal (or) sale of Truck

Explanation:

• Truck (asset) sold for cash, bank, or on credit {On loss}  

Cash ac dr (or) Bank ac (or) Debtor ac (Or) ac ... dr  

P & L ac ... dr

to Truck ac ... 32000

• Truck (asset) sold for cash, bank, or on credit {On gain}  

Cash ac dr (or) Bank ac (or) Debtor ac (Or) ac ... dr  

to Truck ac  ... 32000

To P & L ac