On Jan 1, 2018, Gigi, Inc. purchased $14,000 of equipment. This equipment has an estimated useful life of 7 years, no residual value, and Gigi does straight-line depreciation. But on Jan. 1, 2018, when Gigi purchased the equipment, they debited SG&A Expense by mistake.

Gigi would have depreciated the equipment by $2,000 in 2018 if they had correctly recorded the acquisition journal entry.

1. Gigi, Inc. realizes its error in 2020. What journal entry would they make to correct current account balances? (Ignore tax effects)