The balance sheet of Foster Ltd at 31 December 2019 showed:

$

Equipment

60 000

Accumulated depreciation of equipment

44 000

16 000

On 1 January 2020 the equipment was sold for $18 000. What is the accounting entry to record the receipt of the proceeds from the sale of the equipment?

DR Bank $18 000; CR Equipment $18000.

DR Bank $2000; CR Proceeds from sale of equipment $2000.

DR Bank $18 000; CR Proceeds from sale of equipment $18000.

DR Bank $16 000; CR Proceeds from sale of equipment $16000.