Q. Baoshan Energy Ltd. in Shanghai, China, has a tank lorry that costed the company 300,000 when it was purchased on January 1, 2016. The vehicle has an estimated useful life of 10 years and no residual value. Baoshan uses straight-line method of depreciation on equipment. Baoshan decides to dispose the tank lorry and sells it to Pudong Oil & Gas Co. on August 31, 2020. (Currency in Chinese yuan, )

Instructions:

A. What journal and T-account entries would Baoshan Energy make to record the sale of the tank lorry for 170,000 cash on August 31, 2020?

B. What journal and T-account entries would Baoshan Energy make to record the sale of the tank lorry for 100,000 cash on August 31, 2020?