Rivera Company decided to trade in an old machine for a new one. The old machine originally cost $33,000, and on the date it was traded in, it had an accumulated depreciation of $14,520.

The price of the new machine was $35,600. Rivera Company was given a trade-in allowance of $21,000 for the old machine, and agreed to pay the balance in cash.

Required:

Prepare the journal entry on Rivera Company's records to record the trade-in transaction.

Note: No dates are necessary in the journal entry.

Date

Account Title

Debit

Credit