On January $2,2021,$ Hardy Furniture purchased display shelving for $$8,700$ cash, expecting the shelving to remain in service for five years. Hardy depreciated the shelving on a double$-$declining$-$balance

basis, with $$2,000$ estimated residual value. On August $31,2022,$ the company sold the shelving for $$2,400$ cash.

Read the requirement.

Start by recording depreciation expense on the shelving for $2022.($Record debits first, then credits. Exclude explanations from any journal entries.$)$

Journal Entry

Requirement

Record both the depreciation expense on the shelving for $2022$ and its sale in

August. Also show how to compute the gain or loss on the disposal of the

shelving.