On January $2,2021,$ Sonoma $-$ Maine Furniture purchased display shelving for $$8,700$ cash, expecting the shelving to remain in service for five years. Sonoma $-$ Maine depreciated the shelving on a double$-$declining$-$balance basis, with $$1,600$ estimated residual value. On August $31,2022,$ the company sold the shelving for $$2,500$ 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.$)$

$\backslash$table$[[,$Journal Entry,,$],[$Date$,$Accounts,Debit,Credit$],[$Aug $31,$Depreciation Expense$-$Fixtures,$1,392,1302]]$

Show how to compute the gain or loss on the disposal of the shelving. $($Use a minus sign or parentheses for a loss.$)$

$\backslash$table$[[,$Sales proceeds,$-,$Book value,$=,$Gain $($Loss$)$ on sale$],[$$$,2,500,-$$$,3,828,=,(1,328)$