Wildhorse Ltd. purchased an electric wax melter on April 30, 2020, by trading in its old gas model and paying the balance in cash. The following data relate to the purchase: List price of new melter $15,200 Cash paid 7,800 Cost of old melter (5-year life, $670 residual value) 12,670 Accumulated depreciation on old melter (straight-line) 7,200 Market value of old melter in active secondary market 5,860 Assuming that Wildhorse's fiscal year ends on December 31 and depreciation has been recorded through December 31, 2019, prepare the journal entries that are necessary to record this exchange. (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 Depreciation Expense 670 670 Accumulated Depreciati (To record depreciation expense to date of exchange) Equipment 13660 x Accumulated Depreciation 7870 Gain on Disposal of EPL 1060 Cash 7800 12,670 Equipment (To record equipment exchange) Preview