Sheridan Ltd. purchased a delivery truck on July 1, 2021. The list price of the new truck was $91,000. Sheridan offered a used truck as a trade-in on the purchase. The used truck had been purchased for $38,000 and the accumulated depreciation to the date of the exchange was $34,900. Sheridan looked up the fair value of the used truck on a local web site and found that its used truck had resale value of $5,300. The dealer offered a $7,300 trade-in allowance on the purchase of the new truck. The deal was concluded and Sheridan paid $83,700 on the exchange. On November 1, 2021, a set of snow tires were purchased for $1,300. On December 31, 2021, the companys year-end, Sheridan recorded depreciation using the straight-line method, using an estimated useful life of 6 years and an estimated residual value of $5,600. On January 2, 2022, an in experienced driver had an accident and totally destroyed the truck. The insurance company paid Sheridan $80,650 for the truck.

Sheridan Ltd. purchased a delivery truck on July 1, 2021. The list price of the new truck was $91,000. Sheridan offered a used truck as a trade-in on the purchase. The used truck had been purchased for $38,000 and the accumulated depreciation to the date of the exchange was $34,900. Sheridan looked up the fair value of the used truck on a local web site and found that its used truck had resale value of $5,300. The dealer offered a $7,300 trade-in allowance on the purchase of the new truck. The deal was concluded and Sheridan paid $83,700 on the exchange. On November 1, 2021, a set of snow tires were purchased for $1,300. On December 31, 2021, the company's year-end, Sheridan recorded depreciation using the straight-line method, using an estimated useful life of 6 years and an estimated residual value of $5,600. On January 2, 2022, an in experienced driver had an accident and totally destroyed the truck. The insurance company paid Sheridan $80,650 for the truck. Record all of the transactions described in the above events. (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.) Account Titles and Explanation Debit Credit Date July 1, 2021 Jan. 2, 2022