Mercury Inc. purchased equipment in 2016 at a cost of $157,000. The equipment was expected to produce 300,000 units over the next five years and have a residual value of $37,000. The equipment was sold for $81,800 part way through 2018. Actual production in each year was: 2016 = 42,000 units 2017 = 67,000 units 2018 = 34,000 units. Mercury uses units-of-production depreciation, and all depreciation has been recorded through the disposal date.

Required:

1. Prepare the journal entry to record the sale.

2. Assuming that the equipment was sold for $102,800, prepare the journal entry to record the sale