On January 2, 2015, Favorite Clothing Consignments purchased showroom fixtures for $13,000 cash, expecting the fixtures to remain in service for five years. Favorite has depreciated the fixtures on a double-declining-balance basis, with zero residual value. On September 30, 2016, Favorite sold the fixtures for $6,500 cash. Record both depreciation expense for 2016 and sale of the fixtures on September 30, 2016.

Begin by recording the depreciation expense for 2016:

Debit: Depreciation Expense - Fixtures $_______. Credit: Accumulated Depreciation - Fixtures $_______.

Before recording the sale of the fixtures, let's calculate any gain or loss on the sale of the fixtures.

Market value of assets received $_____ Less: Book value of assets disposed of $_____ Cost $______ Less: Accumulated Depreciation $______ Gain or (Loss) $_______

Now record the sale of the fixtures on September 30, 2016.

Debit: Cash $_____ Debit: Accumulated Depreciation $_____ Credit: Fixtures $_____ Credit: Gain on Disposal $_____