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ABC Company purchased a delivery truck for $11,000 on January 1, 2020. The truck has an expected salvage value of $1,000 and is expected to
- ABC Company purchased a delivery truck for $11,000 on January 1, 2020. The truck has an expected salvage value of $1,000 and is expected to have a useful life of 5 years and is depreciated using the straight-line method.
Prepare journal entries to record the sale of the delivery truck in each of the three independent situations below.
- Sold for $3,000 on January 1, 2023
- Sold for $7,000 on January 1, 2023
- Discarded or scrap the delivery truck on January 1, 2023.
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