Question

Oriole Company retires its delivery equipment, which cost $53,990. Accumulated depreciation is also $53,990 on this delivery equipment. No salvage value is received. (b) Assume the same information as in part (a), except that accumulated depreciation for the equipment is $37,080 instead of 53,990.

Answer 1

Answer:

Please see the answer below:

Explanation:

(a)

Debit: Accumulated Depreciation     $53,990

Credit: Delivery Equipment                              $53,990

To record disposal of delivery equipment.

(b)

Debit: Accumulated Depreciation      $37,080

Debit: Loss                                             $16,910

Credit: Delivery Equipment                               $53,990

To record Loss on disposal of Delivery Equipment.