Question 1 2(working and calculations) +3 (journal entry)=5 Marks

Netsol Communication purchased equipment on January 1, 2018, for $27,500. Suppose Netsol Communication sold the equipment for $20,000 on December 31, 2020. Accumulated Depreciation as of December 31, 2020, was $10,000. Journalize the sale of the equipment, assuming straight-line depreciation was used.