Spendless Industries purchased machinery on January 1, 2019, at a total cost of $85,000. The machinerys estimated useful life is 5 years or 40,000 hours, and its residual value is $5,000. During 2019 and 2020, the machinery was used 7,000 and 7,500 hours, respectively.

Prepare the adjusting journal entry to record depreciation on Dec. 31, 2019 (straight-line).