Arbor Industries sold their old office furniture for cash, to make way for new replacement furniture. Their journal entry to record the sale will include:

a. A debit to accumulated depreciation and a credit to cash

b. A debit to accumulated depreciation and a credit to furniture

c A debit to depreciation expense and a credit to cash

d A debit to depreciation expense and a credit to furniture

(50 of 50)

Harbor Manufacturing includes warranties on all of its products sold. Harbors warranty liability was $10,000 on January 1. During the year, Harbor made repairs under warranty of $12,000 had sales revenue of $750,000. If Harbor estimates that warranty costs are 2% of sales, what is the balance in the warranty liability account at December 31?

a. $10,000

b $12,000

c.$13,000

d $15,000

Zinger Inc. has a delivery truck which originally cost $23,000. It has a residual value of $5,000. The truck has a total life of 9 years, and was purchased 3 years ago. This year, the truck was used from January 1 until March 31. On April 1, the truck was sold.

Assume that Zingers accumulated depreciation on the truck at the time of sale was $8,000. If Zinger received $14,000 cash when the truck was sold, what amount of gain or loss was recognized?

a $1,000 gain

b $1,000 loss

c $4,000 gain

d $4,000 loss