ABC Corporation owns machinery that cost SAR 10,000 purchased on July 1, 2017. Depreciation recorded at a rate of SAR 1,000 per year, resulting in a balance in accumulated depreciation of SAR 3,500 at December 31, 2020. The machinery sold on September 1, 2021, for SAR 7,500 Cash.

Prepare journal entries to

1. Record journal entry to update depreciation for 2021
2. Record the entry on sales