Blue Spruce Corporation owns equipment that cost $73,200 when purchased on April 1, 2013. Depreciation has been recorded at a rate of $12,200 per year, resulting in a balance in accumulated depreciation of $57,950 at December 31, 2017. The equipment is sold on July 1, 2018, for $14,640. Prepare journal entries to (a) update depreciation for 2018 and (b) record the sale. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)