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On December 15, 2020, a company sold a fully depreciated truck that had a cost of $100,000. It received cash of $20,000 and made the
On December 15, 2020, a company sold a fully depreciated truck that had a cost of $100,000. It received cash of $20,000 and made the following entry.
Cash 20,000
Trucks 20,000
Assuming closing entries for 2020 have not been, the entry needed to correct the company's books would include
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A credit to Gain on Sale of Truck for $20,000
A credit to Trucks for $100,000
A credit to Accumulated Depreciation for $100,000
A debit to cash for $20,000
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