On January 2, 2016, Pet Retreat purchased fixtures for $15,400 cash, expecting the fixtures to remain in service for six years. Pet Retreat has depreciated the fixtures on a straight-line basis, with $1,000 residual value. On May 31,2018, Pet Retreat sold the fixtures for $3,600 cash. Record both depreciation expense for 2018 and sale of the fixtures on May 31, 2018.

On January 2, 2016, Pet Retreat purchased fixtures for $15,400 cash, expecting the fixtures to remain in service for six years. Pet Retreat has depreciated the fixtures on a straight-line basis, with $1,000 residual value. On May 31, 2018, Pet Retreat sold the fixtures for $3,600 cash. Record both depreciation expense for 2018 and sale of the fixtures on May 31, 2018. (Assume the modified half- month convention is used. Record debits first, then credits. Select the explanation on the last line of the journal entry table.) Begin by recording the depreciation expense as of May 31, 2018. Date Accounts and Explanation Debit Credit May 31 Before recording the sale of the fixtures, let's calculate any gain or loss on the sale of the fixtures. (Enter a loss with a minus sign or parentheses.) Market value of assets received Less: Book value of asset disposed of Cost Less: Accumulated Depreciation Gain or (Loss) Now, record the sale of the fixtures on May 31, 2018. Date Accounts and Explanation May 31 Debit Credit