Question $3$ of $5$

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Blossom Ltd$.$ purchased an electric wax melter on April $30,2023,$ by trading in its old gas model and paying the balance in cash. The following data relate to the purchase:

List price of new melter

Cash paid

Cost of old melter $(5-$year life, $$730$ residual value$)$

Accumulated depreciation on old melter $($straight$-$line$)$

Market value of old melter in active secondary market

$$15,400$

$6,600$

$12,730$

$7,200$

$5,890$

Assuming that Blossom's fiscal year ends on December $31$ and depreciation has been recorded through December $31,2022,$ prepare the journal entries that are necessary to record this exchange. $($Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select $"$No Entry" for the account titles and enter O for the amounts. List all debit entries before credit entries.$)$

Account Titles and Explanation

Debit

Credit