Stanton Fitness Center is disposing of one of its treadmills. The original cost of the treadmill was $4,900, and depreciation of $3,500 has been recorded to date. Sport Equipment, Inc. will give Stanton a $1,000 trade in allowance toward the purchase of a new treadmill. The new treadmill has a list price of $7,100. The balance must be paid in cash. Prepare the journal entry to record the disposal of the treadmill.