Abbott Landscaping purchased a tractor at a cost of $27,000 and sold it three years later for $14,400. Abbott recorded depreciation using the straight-line method, a five-year service life, and a $3,500 residual value. Tractors are included in the Equipment account.

1. Record the sale. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

2. Assume the tractor was sold for $9,400 instead of $14,400. Record the sale. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)