On January 2, Year 1, Barnes Company purchased equipment costing $56,900, with an estimated salvage value of $3,000 and an estimated useful life of 11 years. On December 31, Year 7, Barnes Company scrapped the equipment. Required: Prepare the journal entry to record the scrapping of the asset. Note: Assume that Barnes Company uses the straight-line depreciation method and that depreciation expense has already been recorded for the current year. Date Account Title Debit Credit Dec. 31 Accumulated Depreciation Loss on Disposal (Choose one) Gain on Disposal Loss on Disposal Clear Undo Help