Strawberry Fields purchased a tractor at a cost of $37,000 and sold it two years later for $23,800. Strawberry Fields recorded depreciation using the straight-line method, a five-year service life, and an $7,000 residual value.

1. What was the gain or loss on the sale?

2. Record the sale. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.)