On January 2, Year 1, Barnes Company purchased equipment costing $10,800, with an estimated salvage value of $2,600 and an estimated useful life of 10 years. On December 31, Year 3, 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