Novak Corporation owns machinery that cost $$30,000$ when purchased on July $1,2021.$ Depreciation has been recorded at a rate of $$3,600$ per year, resulting in a balance in accumulated depreciation of $$12,600$ at December $31,2025.$ The machinery is sold on September $1,2026,$ for $$7,800.$

Prepare journal entries to $($a$)$ update depreciation for $2026$ and $($b$)$ record the sale. $($Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select $"$No Entry" for the account titles and enter O for the amounts. List all debit entries before credit entries.$)$

No$.$ Account Titles and Explanation

Debit

Credit

$($a$)$

$($b$)$