Nelson Company purchased equipment on January 1 for $27,500 and decided to depreciate the equipment on the straight-line method over its useful life of five years. Assuming the equipment's salvage value is $0, the journal entry for the annual depreciation expense Nelson should recognize is:

Debit Depreciation expense $2,750

Credit Depreciation expense $2,750

Debit Depreciation expense $5,500

Credit Depreciation expense $5,500

I do not know the answer.