Assume that on January 2, 20X6, Sanoma of Michigan purchased fixtures for $8,500 cash, expecting the fixtures to remain in service for five years. Sanoma has depreciated the fixtures on a double-declining-balance basis, with $1,800 estimated residual value. On August 31, 20X7, Sanoma sold the fixtures for $2,200 cash. Requirement 1. Record both the depreciation expense on the fixtures for 20X7 and the sale of the fixtures. Apart from your journal entry, also show how to compute the gain or loss on Sanoma's disposal of these fixtures. Start by recording depreciation expense on the fixtures for 20X7. (Record debits first, then credits. Explanations are not required. Leave unused cells blank.) Journal Entry Date Accounts Debit Credit Aug 31