Mercury Inc. purchased equipment in 2016 at a cost of $183,000. The equipment was expected to produce 340,000 units over the next five years and have a residual value of $47,000. The equipment was sold for $97,600 part way through 2018. Actual production in each year was: 2016 = 49,000 units 2017 = 78,000 units 2018 = 39,000 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 $134,600, prepare the journal entry to record the sale.