3. Prepare journal entries to record the machine's disposal under each separate situation: (a) it is sold for $20,500 cash; (b) it is sold for $82,000 cash; and (c) it is destroyed in a fire and the insurance company pays $31,000 cash to settle the loss claim. View transaction list Journal entry worksheet 2 3 Record the sale of the used machine for $20,500 cash. Note: Enter debits before credits Date Dec 31 Credit General Journal Cash Accumulated depreciation - Machinery Loss on sale of machinery Machinery Debit 20,500